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Ellis v. Grant Thornton LLP

The 4th Circuit reversed the U.S. District Court for the Southern District of West Virginia in a case considering whether the defendant, an accounting firm retained by a bank in response to a federal investigation into the bank's activities, owed a duty of care under the West Virginia law of negligent misrepresentation to the plaintiff, who allegedly relied on oral statements made by a partner in the defendant firm and on an audit report prepared by the defendant firm in deciding to accept a job as president of the bank. The appeals court held that the defendant firm owed the plaintiff no such duty under West Virginia law and accordingly reversed the judgment of the district court, which had found in favor of the plaintiff on his negligent misrepresentation claim.

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PUBLISHED

Argued: March 19, 2008

Before DUNCAN, Circuit Judge, HAMILTON, Senior Circuit Judge, and William L. OSTEEN, Jr., United States District Judge for the Middle District of North Carolina, sitting by designation.

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