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SALOMON SMITH BARNEY, INC. v. INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA

291 A.D.2d 285 (2002)

738 N.Y.S.2d 41

SALOMON SMITH BARNEY, INC., Respondent, v. INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA, Appellant and Third-Party Plaintiff, et al., Defendant. STERLING CAPITAL, LLC, et al., Third-Party Defendants-Appellants. (And Another Action.)

Appellate Division of the Supreme Court of the State of New York, First Department.

Decided February 19, 2002.

The subject bond conditions payment on, among other things, an audit, to be performed by a specified accountant and completed no later than January 20, 1999, determining the existence of a debit balance in the investors' margin account with plaintiff. The accountant did not complete the audit by January 20, 1999, and in a letter dated May 14, 1999, advised the investors that he was dissolving his firm and that they should find another accountant to complete the audit. Plaintiff...

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