Legal Briefs: A Periodic Summary of Judicial Decisions Affecting Accounting and Financial Services Professionals - July 2006

In This Issue:

• New Jersey High Court Rules That Company's Fraud Does Not Bar Negligence Suit Against Its Auditor
• Directors of Acquired Company Did Not Breach Their Duty by Not Conducting Due Diligence into Accuracy of Acquiror's Financial Condition
• Lack of Agreement on Valuing Goodwill Creates Problems for a Start-Up Medical Practice
• Court Upholds Subpoena to Accountant for Records of a Non-Party Client
• Confidentiality Agreements Not Always Enforced by Courts
• In Brief

1. Third Circuit Rejects "Deepening Insolvency" Claim Against Accounting Firm
2. No Affidavit of Merit Required for Third-Party Complaint Seeking Contribution for Professional Malpractice
3. Rent-to-Own Contracts Subject to Retail Installment Sales Act, Criminal Usury Law and Consumer Fraud Act
4. Lawyers Who Represent Multiple Clients Cannot Settle Based on Majority Vote