United States District Court for the District of South Carolina
816 F. Supp. 1070 (1992)
Young and other investors (investors) (plaintiffs) deposited more than $500,000 in a bank, and the entire amount disappeared. The investors claimed that when they deposited their money in the bank, they relied on an audit letter from Price Waterhouse, Chartered Accountants (PW-Bahamas) confirming a financial statement that turned out to be falsified. The audit letter was printed on letterhead with a trademark signed “Price Waterhouse.” The investors contend that PW-Bahamas and Price Waterhouse’s partnership in the U.S. (PW-US) operated as partners by estoppel, and therefore PW-US can be held liable for the alleged negligence of PW-Bahamas regarding the audit letter. The investors argue that Price Waterhouse held itself out as a partnership with offices around the world, and PW-US made no distinction between itself and other PW entities around the world. As proof that PW-Bahamas and PW-US held themselves out as partners, the investors offer a Price Waterhouse brochure stating that Price Waterhouse is a large and respected global entity, with 400 offices throughout the world. The investors aver that the brochure was intended to present an image of a large international accounting firm, and that PW-US promoted that image to give the public confidence in Price Waterhouse’s stability and expertise.
Rule of Law
Holding and Reasoning (Hawkins, C.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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read 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. Read more about Quimbee.
Here's why 222,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 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.