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KOHALA AGR. v. DELOITTE & TOUCHE

No. 18368.

949 P.2d 141 (1997)

86 Hawai`i 301

KOHALA AGRICULTURE, Bill Bledsoe, Carachelle, Chapman Irrevocable Trust, Michael Cohlmia, Janelle Catherine Curry Trust, Natalie Barnhart Curry Trust, Terry A. Darden, Robert K. Dowd, Elliot Ginchansky, Helen Rounsaville Hamilton, Wayne Hellman, John J. Hoffman, Jo Hundahl, Russell Johnson, William E. Johnson, Jr., Olin Lancaster, Marion R. Lawler, Jr., Donald McGuire, Larry Pascal, Samuel Roach, Wayland Taylor, Sr., Wayland Taylor, Jr., W.L. Thompson, and Wimmer Investments, Plaintiffs-Appellants, v. DELOITTE & TOUCHE, Defendant-Appellee, and DELOITTE & TOUCHE, Third-Party Plaintiff, v. AGRO-PACIFIC DEVELOPMENT, INC., Pacific Agriculture, Inc., DeDomenico Agro-Pacific Enterprises, John Does 1-20, Doe Corporations 1-10, Doe Partnerships 1-10, and Doe Entities 1-10, Third-Party Defendants.

Intermediate Court of Appeals of Hawai`i.

Opinion on Reconsideration December 18, 1997.

Attorney(s) appearing for the Case

Paul Maki and Elise Owens Thorn, Maki & Thorn, on the briefs, Honolulu, for Plaintiffs-Appellants and Third-Party Defendants.

John T. Komeiji, Lyle Y. Harada, and Patsy H. Kirio, Watanabe, Ing & Kawashima, Honolulu, and Eric H. Fisher, Deloitte & Touche, LLP, on the brief, New York City, for Defendant-Appellee.

Before BURNS, C.J., and WATANABE and ACOBA, JJ.

ACOBA, Judge.

We hold that the tort of negligent misrepresentation, as set forth in the Restatement (Second) of Torts § 552 (1977) (section 552), applies in actions against an accountant for the negligent obtaining and/or communication of information contained in an audit report. Under section 552, an accountant owes a duty to exercise reasonable care and competence in obtaining and communicating this information.

We further hold that section 552...

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