Timm, Schmidt & Co. (Timm) (defendant) prepared financial statements for Clintonville Fire Apparatus, Inc (CFA), who in turn used the reports to seek a loan from Citizens State Bank (Citizens) (plaintiff). Relying on the financial statements, Citizens granted a loan to CFA. It turned out that there were mistakes in the statements and as a result, CFA’s loans were called due. CFA was ultimately liquidated with $152,214 still owed to Citizens. Citizens brought suit against Timm for negligent preparation of the statements. Timm filed a motion for summary judgment which was granted by the trial court. The court of appeals affirmed.