United States uncategorized

Ultramares Corporation v Touche

255 N.Y. 170; 174 N.E. 441 (N.Y. 1931)

JurisdictionUnited States

CourtNew York Court of Appeals

Year1931

StatusPersuasive authority

Key Principle

Auditors owe no duty in ordinary negligence to unknown third parties who rely on their financial statements; liability requires privity (or a relationship approaching privity), or gross negligence amounting to constructive fraud.

Area of Law

Related Cases

Rowland v. Christian 69 Cal. 2d 108, 443 P.2d 561 (1968)

Escola v. Coca Cola Bottling Co. of Fresno 24 Cal. 2d 453, 150 P.2d 436 (1944)

Devlin v. Smith 89 N.Y. 470 (1882)

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