Young v. Jones

Investors (plaintiffs) lost over $500,000 deposited in a bank after relying on an audit letter from Price Waterhouse-Bahamas (PW-Bahamas) confirming a financial statement that turned out to be falsified. They sued Price Waterhouse's U.S. partnership (PW-US) (defendant), arguing it operated as a partner by estoppel with PW-Bahamas because Price Waterhouse held itself out globally as one large, unified firm — pointing to a brochure describing Price Waterhouse's 400 worldwide offices as evidence of that unified image.

Whether a partnership by estoppel exists when a third party does not rely on any statement or act by two companies alleged to have held themselves out as partners, and no credit was extended based on that representation.