FED INS CO v. ANDERSEN & CO.


75 N.Y.2d 366 (1990)

Federal Insurance Company, Appellant, v. Arthur Andersen & Co., Respondent.

Court of Appeals of the State of New York.

Decided February 22, 1990.


Attorney(s) appearing for the Case

Arthur N. Lambert and Susan E. Jaffee for appellant.

Sidney H. Stein and Rob J. Crichton for respondent.

Chief Judge WACHTLER and Judges SIMONS, KAYE, ALEXANDER, TITONE and BELLACOSA concur.


HANCOCK, JR., J.

Plaintiff, a fidelity insurer, paid its insured for a loss caused by the defalcations of an employee. Thereafter, it sued defendant, its insured's accountant and auditor, to recover what it had paid, alleging that defendant was negligent in failing to discover the defalcations. This appeal is from an order affirming summary judgment against plaintiff and dismissing its action.

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