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CREDIT ALLIANCE v. ANDERSEN CO.

101 A.D.2d 231 (1984)

Credit Alliance Corporation et al., Respondents, v. Arthur Andersen & Co., Appellant

Appellate Division of the Supreme Court of the State of New York, First Department.

May 3, 1984

Attorney(s) appearing for the Case

Robert L. King of counsel (John S. Kiernan and Charles W. Boand with him on the brief; Debevoise & Plimpton and Wilson & McIlvaine, attorneys), for appellant.

Melvyn I. Weiss of counsel (Jerome M. Congress and Elizabeth A. Shollenberger with him on the brief; Milberg Weiss Bershad Specthrie & Lerach, attorneys), for respondents.

ASCH and FEIN, JJ., concur with ROSS, J. P.; MILONAS and ALEXANDER, JJ., dissent in an opinion by MILONAS, J.

ROSS, J. P.

I would affirm Special Term's order in its entirety.

Since the defendant elected not to answer, but rather moved to dismiss for failure to state a cause of action, the fundamental principle applies that "every fact alleged must be assumed to be true and the complaint liberally construed in plaintiff's favor" (Barr v Wackman, 36 N.Y.2d 371, 375)....

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