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MANUFACTURERS HANOVER TRUST v. DRYSDALE SEC. CORP.

Nos. 794, 858 and 795, Dockets 85-7827, 85-7865 and 85-7929.

801 F.2d 13 (1986)

MANUFACTURERS HANOVER TRUST COMPANY, Plaintiff-Appellee and Cross-Appellant, v. DRYSDALE SECURITIES CORPORATION; Drysdale Government Securities, Inc.; BMC Acquisition Corp., doing business under the name Buttonwood Management; Arthur Andersen & Co.; David J. Heuwetter; Joseph V. Ossorio; and Peter J. Wasserman, Defendants, Appeal of ARTHUR ANDERSEN & CO., Defendant-Appellant and Cross-Appellee.

United States Court of Appeals, Second Circuit.

Decided September 8, 1986.

Attorney(s) appearing for the Case

Barry R. Ostrager, New York City (John J. Kerr, Jr., Mark G. Cunha, David W. Sussman, Simpson, Thacher & Bartlett, New York City, of counsel), for plaintiff-appellee and cross-appellant.

Robert L. King, New York City (Martin Frederic Evans, Michael E. Wiles, Edwin G. Schallert, William F. Haigney, Debevoise & Plimpton, New York City, Charles W. Boand, Wilson & McIlvaine, Chicago, Ill., of counsel), for defendant-appellant and cross-appellee.

(Daniel L. Goelzer, Gen. Counsel, Jacob H. Stillman, Associate Gen. Counsel, Rosalind C. Cohen, Asst. Gen. Counsel Richard A. Levine, Atty., Paul Gonson, Sol., Washington, D.C., of counsel), for amicus curiae S.E.C.

Before PIERCE, MINER and ALTIMARI, Circuit Judges.

PIERCE, Circuit Judge:

The defendant accounting firm appeals from a judgment entered in the United States District Court for the Southern District of New York, Richard Owen, Judge, after a jury returned a verdict against it. The jury awarded plaintiff $17 million, to which the district judge added pre-judgment interest, post-judgment interest and costs, in a civil action seeking damages for losses that Manufacturers Hanover Trust Company ("Manufacturers" or...

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