New York Court of Appeals
State Street Trust Company, Appellant v. Alwin C. Ernst, Copartners, Under the Firm Name of Ernst & Ernst…
May 24, 1938278 N.Y. 104
Summary
The New York Court of Appeals reversed the lower courts, holding that accountants can be liable to third parties for gross negligence in a certified balance sheet that supports an inference of fraud, and that the plaintiff presented sufficient evidence of reliance and causation; a new trial was ordered.