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GEMSTAR LTD. v. ERNST & YOUNG

No. 1 CA-CV 92-0313.

183 Ariz. 148 (1995)

901 P.2d 1178

GEMSTAR LIMITED, a former British Virgin Islands corporation; Canstar Limited, a former British Virgin Islands corporation; Kunst Corporation, Inc., a corporation; R. Pape Corporation, Inc., a corporation; Richard Holding, a corporation; H.K. Bergmann, Inc., a corporation; Kittan, Inc., a corporation; and James R. Tomasini, Plaintiffs-Appellees, v. ERNST & YOUNG fka Ernst & Whinney, a partnership; Edward A. Villanueva and Lynn Villanueva, husband and wife, Defendants-Appellants.

Court of Appeals of Arizona, Division 1, Department A.

Review Granted and Denied September 12, 1995.

Attorney(s) appearing for the Case

Streich Lang by William S. Hawgood, II, Francis J. Burke, Jr., Jill B. Langley and Karen Potts, Phoenix, and Ernst & Young by Stephen N. Young, Kathryn A. Oberly and Emmett E. Eagan, Jr., Washington, DC, for appellants.

Copple, Chamberlin & Boehm, P.C. by Scott E. Boehm, and Newman, Ahern, Chambliss & Banen by Kevin T. Ahern, Phoenix, for appellees.

Review Granted on issues 1, 2 and 3 and Denied on other issues September 12, 1995.

OPINION

JACOBSON, Presiding Judge.

This lawsuit was brought by two British Virgin Island corporations, Gemstar, Ltd., and Canstar, Ltd. ("the corporations") and five shareholders of these corporations (collectively, "plaintiffs") as a result of defendants' accounting activities regarding two Arizona real estate transactions. Plaintiffs' essential theory of recovery...

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