UNIVERSITY OF MARYLAND v. PEAT MARWICK MAIN & CO.

No. 90-1374.

923 F.2d 265 (1991)

The UNIVERSITY OF MARYLAND AT BALTIMORE, Andrew R. Burgess, M.D., Sea Quest, Inc., and the School Board of Palm Beach County, Florida, for Themselves and all Others Similarly Situated v. PEAT MARWICK MAIN & COMPANY, Constance B. Foster, Insurance Commissioner of the Commonwealth of Pennsylvania, as Rehabilitator of the Mutual Fire, Marine and Inland Insurance Company, Intervenor. Appeal of The UNIVERSITY OF MARYLAND AT BALTIMORE, Andrew R. Burgess, M.D., Sea Quest, Inc., and The School Board of Palm Beach County, Florida.

United States Court of Appeals, Third Circuit.

Decided January 11, 1991.

Rehearing and Rehearing Denied February 8, 1991.


Attorney(s) appearing for the Case

Richard A. Brown (argued), Spencer L. Kimball, Ben Finkelstein, Jeffrey R. Babbin, Spiegel & McDiarmid, Washington, D.C., Harold E. Kohn, David H. Weinstein, Robert S. Kitchenoff, Kohn, Savett, Klein & Graf, P.C., Philadelphia, Pa., for appellants University of Maryland at Baltimore, Andrew R. Burgess, M.D., Sea Quest, Inc., and School Bd. of Palm Beach County, Fla.

Richard DiSalle (argued), Roger Curran, Susan Hileman Malone, Rose, Schmidt, Hasley & DiSalle, Pittsburgh, Pa., Bonnie B. Leadbetter, Mut. Fire, Marine & Inland Ins. Co., Philadelphia, Pa., for Intervenor-Appellee Constance B. Foster, Ins. Com'n of Com. of Pa., as Rehabilitator of the Mut. Fire, Marine and Inland Ins. Co.

John W. Frazier, IV, John E. Caruso, Richard G. Placey (argued), Montgomery, McCracken, Walker & Rhoads, Philadelphia, Pa., (Claudia L. Taft, Frances Civardi, KPMG Peat Marwick, New York City, of counsel), for appellee Peat Marwick Main & Co.

Before MANSMANN, ALITO and GARTH, Circuit Judges.


Rehearing and Rehearing In Banc Denied February 8, 1991.

OPINION OF THE COURT

GARTH, Circuit Judge:

This appeal arises from a class action filed in the district court for the Eastern District of Pennsylvania by certain policy-holders of an insolvent insurance company, The Mutual Fire, Marine and Inland Insurance Company ("Mutual Fire"), against Mutual Fire's independent auditor, seeking damages allegedly resulting from the auditor's false and misleading...

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