Security Pacific Business Credit, Inc., Respondent v. Peat Marwick Main & Co., as Successor to Main Hurdman and KMG…

Summary

The New York Court of Appeals reversed the Appellate Division and granted summary judgment to the defendant accounting firm, holding that the plaintiff lender failed to establish a relationship "sufficiently approaching privity" under the Credit Alliance test and therefore could not recover for alleged negligence. The Court also announced a new, stricter rule requiring an "unmistakable relationship" between accountants and non‑contracting lenders to impose liability.