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SCOTTISH HERITABLE TRUST v. PEAT MARWICK MAIN & CO.

No. 94-10952.

81 F.3d 606 (1996)

The SCOTTISH HERITABLE TRUST, PLC and SHT Holdings (US), Inc., Plaintiffs-Appellees Cross-Appellants, v. PEAT MARWICK MAIN & CO., a partnership and KPMG Peat Marwick, a partnership, Defendants-Appellants Cross-Appellees.

United States Court of Appeals, Fifth Circuit.

April 30, 1996.

Attorney(s) appearing for the Case

Dale Andrew Cooter, James Emil Tompert, Cooter, Mangold, Tompert & Chapman, Washington, DC, for Scottish Heritable Trust, PLC and SHT Holdings.

Timothy W. Mountz, Cynthia Keely Timms, Morris D. Harrell, Locke, Purnell, Rain & Harrell, Dallas, TX, David Mark Pyke, Radar, Campbell, Fisher & Pyke, Dallas, TX, Anthony Joseph Costantini, Sutherland, Asbill & Brennan, New York City, for defendants-appellants cross-appellees.

Before REYNALDO G. GARZA, WIENER and STEWART, Circuit Judges.

WIENER, Circuit Judge:

Defendant-Appellant Peat Marwick Main & Co. (Peat Marwick) appeals from an adverse judgment following a jury verdict that Peat Marwick is liable to a third party for negligent misrepresentations contained in audit reports. Concluding that Texas law does not permit the plaintiffs to recover in these particular circumstances, we reverse the district court's judgment and render a take-nothing judgment in favor of Peat Marwick.

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