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GEMSTAR LTD. v. ERNST & YOUNG

No. CV-95-0186-PR.

185 Ariz. 493 (1996)

917 P.2d 222

GEMSTAR LIMITED, a British Virgin Islands corporation; Canstar Limited, a 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.

Supreme Court of Arizona, En Banc.

May 7, 1996.

Attorney(s) appearing for the Case

Broening, Oberg, Woods, Wilson & Cass, P.C. by Kevin T. Ahern, Copple, Chamberlin & Boehm, P.C. by Scott E. Boehm, Phoenix, for Appellees.

Streich Lang by William S. Hawgood, II, Karen A. Potts, Phoenix, Ernst & Young, L.L.P. by Stephen N. Young, Los Angeles, CA, Kathryn A. Oberly, Washington, D.C., Emmett E. Eagan, Jr., Washington, D.C., for Appellants.

Gammage & Burnham by Grady Gammage, Jr., Phoenix, for Amicus Curiae Arizona Society of Certified Public Accountants.

OPINION

ROBERT J. CORCORAN, Justice (Retired).

This case is one of three lawsuits involving the purchase and resale of two Arizona real properties. Plaintiffs are two British Virgin Islands (B.V.I.) corporations, Gemstar Limited and Canstar Limited, and 6 of the corporations' original 8 shareholders. The 6 plaintiff shareholders are 5 closely held corporations and one individual: (1) Kunst Corporation (principal Adam Kunst); (2) R. Pape Corporation (principal...

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