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FMC Corp. v. Liberty Mutual Insurance Co.

Illinois Appellate Court

603 N.E.2d 716 (1992)

Facts

FMC Corporation (plaintiff) sued Liberty Mutual Insurance Company and other insurance companies (collectively, the insurance companies) (defendants) seeking a declaratory judgment regarding certain coverages. FMC used KPMG Peat Marwick (KPMG) to audit its financial and other accounting papers. The insurance companies served a subpoena on KPMG seeking various documents, including documents that were prepared for the filing of FMC’s tax returns and documents concerning third-party claims against FMC. The circuit court quashed the subpoena, citing Illinois’s accountant-client privilege. The insurance companies appealed.

Rule of Law

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Issue

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Holding and Reasoning (Greiman, J.)

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A "yes" or "no" answer to the question framed in the issue section;
A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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