From our private database of 33,600+ case briefs...
Ellis v. Grant Thornton LLP
United States Court of Appeals for the Fourth Circuit
530 F.3d 280 (2008)
In May 1998, government regulators required First National Bank of Keystone (Keystone) to retain accountants to perform an audit due to suspicious practices by Keystone. Grant Thornton LLP (defendant), led by one of its partners, Quay, conducted the audit. Grant Thornton and Quay negligently performed the audit and erroneously stated that Keystone was solvent. In fact, Keystone was not solvent. The audit stated that it was for the use of Keystone’s board and government regulators and should not be relied upon by third parties. At about the same time that the audit was completed, a president of United National Bank (United), Gary Ellis (plaintiff), was considering leaving United to become Keystone’s president. Quay told Ellis that Keystone had a clean audit. Relying on this information, Ellis resigned from United and became Keystone’s president. Keystone was later sued in class-action securities litigation, and the class also named Ellis as a defendant. Ellis cross-claimed against Grant Thornton for negligent misrepresentation, seeking damages because Ellis would not have left United had Ellis known that Keystone was insolvent. The trial court awarded Ellis $2.4 million. Grant Thornton appealed.
Rule of Law
Holding and Reasoning (Hamilton, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 603,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 603,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 33,600 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.