Negligent Misrepresentation Applies to Accountants, Financial Professionals, Law Firms and Auditors
A bank sued its accounting firm and accountants for negligent misrepresentation, among other claims, in conjunction with the preparation of financial statements for a commercial loan applicant. The trial court granted the defendants’ preliminary objections finding the bank did not present viable claims for negligent misrepresentation, fraud, and negligence per se. As to the negligent misrepresentation counts the accountants relied on prior case law arguing it restricted tort liability for such claims to architects and design professionals in their dealings with contractors. The Pennsylvania court disagreed, noting an interim court decision expanding such liability to a law firm and an auditor, it refused to limit the liability of the financial professionals in this case.