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H. ROSENBLUM, INC. v. ADLER

183 N.J. Super. 417 (1982)

444 A.2d 66

H. ROSENBLUM, INC., A NEW JERSEY CORPORATION, SUMMIT GIFT GALLERIES, INC., A NEW JERSEY CORPORATION (FORMERLY KNOWN AS SUMMIT PROMOTIONS, INC.), HARRY ROSENBLUM AND BARRY ROSENBLUM, PLAINTIFFS-APPELLANTS, v. JACK F. ADLER ... [AND 426 OTHER NAMED DEFENDANTS LISTED IN THE COMPLAINT], INDIVIDUALLY AND AS PARTNERS TRADING AS TOUCHE ROSS & CO., SEVERALLY AND IN THE ALTERNATIVE, DEFENDANTS-RESPONDENTS.

Superior Court of New Jersey, Appellate Division.

Decided March 17, 1982.

Attorney(s) appearing for the Case

Bradley R. Brewer argued the cause for appellants (Cummins, Dunn, Horowitz & Pashman, attorneys; Bradley R. Brewer, of counsel and on the brief; I. Walton Bader, of counsel).

Leon Gold argued the cause for respondents (Schneider, Schneider & Balt, attorneys; Jacob Schneider on the brief).

Before Judges BISCHOFF, KING and POLOW.

The opinion of the court was delivered by BISCHOFF, P.J.A.D.

The issues presented by this appeal are whether an accountant who prepares an audit owes a duty of care to (1) a person with whom he has no privity and (2) a person who he has no reason to know would rely upon the audit at the time it was made.

Defendants, partners of Touche Ross & Co., a national accounting firm, performed annual financial audits for Giant, a public corporation. Giant was required...

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