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INTERNATIONAL MORTG v. JOHN P. BUTLER ACCOUNTANCY

Docket No. G001099.

177 Cal.App.3d 806 (1986)

223 Cal. Rptr. 218

INTERNATIONAL MORTGAGE COMPANY, Plaintiff and Appellant, v. JOHN P. BUTLER ACCOUNTANCY CORPORATION et al., Defendants and Respondents.

Court of Appeals of California, Fourth District, Division Three.

February 20, 1986.

Attorney(s) appearing for the Case

COUNSEL

Manatt, Phelps, Rothenberg & Tunney, Manatt, Phelps, Rothenberg, Tunney & Phillips, Paul J. Hall and John W. Cochrane for Plaintiff and Appellant.

Parkinson, Wolf, Lazar & Leo, Alan H. Lazar, Jeffrey H. Leo and Cathryn M. Brogan for Defendants and Respondents.

OPINION

TROTTER, P.J.

We are asked to declare for the first time that a certified public accountant (CPA) owes a duty of care to reasonably foreseeable plaintiffs who rely on alleged negligently prepared and issued unqualified audited financial statements.

John P. Butler Accountancy Corporation (Butler) entered into an agreement with Westside Mortgage, Inc. (Westside) to audit Westside's financial statements for the year ending...

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