United States Sixth Circuit

In a bankruptcy trustee's suit against debtor-company's former auditor, claiming that the auditor negligently performed its audits by failing to uncover and report unsound related-party transactions entered into by the company's sole shareholder and CEO, as well as aided and abetted the CEO's breach of his fiduciary duty to the company, district court's grant of the auditor's motion for summary judgment is affirmed where: 1) the trustee's amended complaint does not allege reliance by the company or by the company's fairness committee, and the alleged reliance by the company's creditors cannot support a claim brought by the trustee on behalf of the company; and 2) district court did not err in holding that the residual statute of limitations applied to the trustee's aiding-and-abetting claim.

Appellate Information

• Argued 07/29/2010
• Decided 09/30/2010
• Published 09/30/2010

Judges

• GILMAN

Court

• United States Sixth Circuit

Counsel

• For Appellant:
  
• Gregory D. Hanley, John F. Hartmann