Blue Bell, Inc. v. Peat, Marwick, Mitchell & Co.
Texas Court of Appeals
715 S.W.2d 408 (1986)
- Written by Sharon Feldman, JD
Facts
Blue Bell, Inc. (plaintiff) was a manufacturer that extended credit to a subsidiary of Myers Department Stores, Inc. (Myers). Peat, Marwick, Mitchell & Co. (PMM) (defendant) audited Myers’s financial statements. PMM provided Myers with 70 copies of the audited statements. Myers furnished the combined financial statements and accountants’ report to Blue Bell. Blue Bell relied on the statements in extending credit to the Myers subsidiary. Myers filed for bankruptcy. Blue Bell recovered only a portion of what was owed. Blue Bell sued PMM for negligent misrepresentation, fraud, and other claims. PMM moved for summary judgment. The court granted summary judgment in favor of PMM. Blue Bell appealed.
Rule of Law
Issue
Holding and Reasoning (Akin, J.)
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