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ARTHUR ANDERSEN v. PERRY EQUIPMENT CORP.

No. 95-0444.

945 S.W.2d 812 (1997)

ARTHUR ANDERSEN & CO., Petitioner, v. PERRY EQUIPMENT CORPORATION, Respondent.

Supreme Court of Texas.

Decided May 16, 1997.

Attorney(s) appearing for the Case

Ben Taylor, Dallas, Thomas C. Godbold, Houston, for Petitioner.

Christopher B. Allen, Michael P. Cash, James W. Paulsen, Houston, for Respondent.

CORNYN, Justice.

We withdraw our opinion of January 10, 1997, and substitute the following in its place. The parties' motions for rehearing are overruled.

In this accounting malpractice case, Perry Equipment Corporation (PECO) sued the accounting firm of Arthur Andersen for a faulty audit, which PECO relied on to purchase another company, Maloney Pipeline Systems. The audit favorably reported Maloney's financial...

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