Citizens State Bank v. Timm, Schmidt & Co.
Wisconsin Supreme Court
335 N.W.2d 361 (Wis. 1983)
Relevant factsFree
Timm, Schmidt & Co. (defendant) prepared financial statements for Clintonville Fire Apparatus (CFA), which CFA used to obtain a loan from Citizens State Bank (plaintiff); the statements contained errors, and when they surfaced, CFA's loans were called due, leading to CFA's liquidation with over $152,000 still owed to Citizens. Citizens sued Timm for negligent preparation of the statements; the trial court granted Timm summary judgment for lack of privity, and the court of appeals affirmed.
IssueFree
Whether an accountant can be held liable, absent privity of contract, to a third party who relies to its detriment upon a negligently prepared financial report.