NORTH AMERICAN SPECIALTY INS. CO. v. LAPALME

No. 00-2408.

258 F.3d 35 (2001)

NORTH AMERICAN SPECIALTY INSURANCE COMPANY, Plaintiff, Appellant, v. David LAPALME et al., Defendants, Appellees.

United States Court of Appeals, First Circuit.

Decided August 2, 2001.


Attorney(s) appearing for the Case

Peter B. McGlynn, with whom Bruce D. Levin and Bernkopf, Goodman & Baseman LP were on brief, for appellant.

Warren D. Hutchison, with whom Nancy M. Reimer and Donovan Hatem LP were on brief, for appellees.

Before BOUDIN, Chief Judge, SELYA, Circuit Judge, and SCHWARZER, Senior District Judge.


SELYA, Circuit Judge.

Audit reports and financial statements are staples of the accounting profession. Accuracy is a paramount concern, for much can turn on a relatively minor bevue. But mistakes occur, and courts have grappled with the extent of an accountant's liability to third parties (i.e., non-clients) for such errors. This appeal requires us to enter the fray.

The case at hand involves ostensible misstatements attributed to the carelessness of the defendants...

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