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Tuesday, July 17, 2007

Ind. Decisions - 7th Circuit issues one Indiana decision today

In Gregory S. Fehribach v. Ernst & Young LLP (SD Ind., Judge Tinder), a 13-page opinion, Judge Posner writes:

The plaintiff is the trustee of Taurus Foods, Inc., a small company engaged in the distribution of frozen meats and other foods, which was forced into bankruptcy under Chapter 7 of the Bankruptcy Code by three of its creditors. The suit charges the company’s auditor, Ernst & Young, with negligence and breach of contract in failing to include a going-concern qualification in an audit report. The charges are governed by Indiana’s Accountancy Act of 2001 because they arise out of an agreement to provide professional accounting services. Ind. Code § 25-2.1-1. The case is before us on the trustee’s appeal from the grant of summary judgment to the defendant. * * *

The judgment and the award of costs are AFFIRMED.

ROVNER, Circuit Judge, concurring. I agree that this action is barred by the statute of limitations, and would limit the decision to that issue alone.

Posted by Marcia Oddi on July 17, 2007 12:56 PM
Posted to Ind. (7th Cir.) Decisions