1250 (1938). The balance sheets showed solvency, when in fact there was insolvency. Although dicta in a recent district court opinion (Rusch Factors, Inc. v. Levin, 284 F. Supp. Citations are also linked in the body of the Featured Case. Neither actual knowledge by the accountant of the third person's reliance nor quantitative limitation of the class of reliant persons is requisite to recovery for fraud. For the purposes of the Erie doctrine, state choice of laws principles are substantive, and thus must be applied. The Court deems the plaintiff's complaint neither so vague nor so ambiguous as to preclude the defendant from framing a responsive pleading. If there were a conflict this Court would have to predict what the Rhode Island Supreme Court would do if it had to decide this choice of laws question. The facts are as follows. But there is no such conflict of laws. With respect, then to the plaintiff's negligence theory, this Court *93 holds that an accountant should be liable in negligence for careless financial misrepresentations relied upon by actually foreseen and limited classes of persons.  Should a genuine conflict exist between the general tort law of Rhode Island and the more specific and developed tort law of New York, then this Court would have first to ascertain what choice of law rule Rhode Island would adopt in the circumstances of this case, see footnote 4 supra; and would have second, to apply that rule. The same broad perimeter prevails if the misrepresenter's conduct is heedless enough to permit an inference of fraud. See, e. g., Guggisberg v. Boettger, 139 Minn. 226, 166 N.W. It is certainly not an invasion of the plaintiff's rational integrity. Rusch Factors Inc.v. 767 (1950). *86 Michael A. Silverstein, Woonsocket, R. I., for plaintiff. Co., 313 U.S. 487, 61 S. Ct. 1020, 85 L. Ed. Levin v. Fisch. A federal court whose jurisdiction is predicated upon diversity of citizenship must apply the substantive law of the state in which it sits. The plaintiff was denied recovery in a 2-1 decision by the English Court of Appeals. Thus, this Court must look to the Rhode Island statutes of limitations.. LEVIN v STAATSSECRETARIS VAN JUSTITIE JUDGMENT Facts and Issues The facts of the case, the course of the procedure and the observations sub mitted under Article 20 of the Protocol on the Statute of the Court of Justice of the EEC may be summarized as follows: I — Facts and written procedure 1. Limitation of actions generally. 1250 (1938). Cash-strapped Air New Zealand must pay $40,000 for a ''serious'' breach of NZX rules covering the disclosure of material information. Comm.L.Rev. 441 (1932)was a tort law case in the United States on the question of indeterminate liability and privity. In that case the defendant accountants were employed by a company to perform the company's yearly audit. 137, 142-43 (1967). Browse channels Sign in to like videos, comment, and subscribe. 12, 1966). Erie R.R. ); Duro Sportswear, Inc. v. Cogen, Sup., 131 N.Y.S.2d 20; Investment Corp. of Florida v. Buchman, Fla.App., 208 So.2d 291 (1968); O'Connor v. Ludlum, 92 F.2d 50; State St. Trust Co. v. Ernst, 278 N.Y. 104, 15 N.E.2d 416; Ultramares v. Touche Co., 255 N.Y. 170, 174 N.E. But the basic theory is the same. The case of Ultramares Corporation v Touche 174 N.E. And in a 1963 decision, the House of Lords cast serious doubt upon the validity of the Candler majority decision by ruling that bankers who negligently misrepresented a company's credit standing to trade creditors should be liable in negligence since they knew the creditors would rely on the credit rating. See Comment, 9 B.C.Ind. two legal rules was delivered in Rusch Factors v. Levin.9 The federal district court in Rhode Island held that auditors should be liable in negligent misrepresentation for financial misinformation relied upon by actually foreseen and limited classes of persons. Hedley Byrne & Co. v. Heller and Partners,  A.C. 465, 539. 164 (C.A.). Tr.  ZACC 13; 1996 (1) SA 984 (CC); 1996 (1) BCLR 1 (CC) at para 234. The amount in controversy, exclusive of interest and costs, exceeds $10,000. 319, 327-28 (1951), and this Court shares the doubt. Seavey, Candler v. Crane, Christmas Co., Negligent Misrepresentation by Accountants, 67 L.Q.Rev. In this regard, the controlling precedent is Commerce Oil Refining Corporation v. Miner, 98 R.I. 14, 199 A.2d 606. If, on the other hand, Rhode Island followed the more modern contacts and interest analysis approach to choice of laws, as enunciated in the tentative drafts of the Restatement (Second) of Conflict of Laws, then Â§ 379(c)(2) of the Restatement (Second) would be the applicable principle of law. Whether that portion of the statute should be read to include both libelous statements and oral misrepresentations is a question this Court need not determine. 85 (D.R.I.1968)) on motion to dismiss suggests that that court might repudiate the Ultramares privity requirement given the opportunity to do so, courts have not yet held the auditor subject to liability to all those whom he should reasonably expect to rely on his certification of financial statements. Many are downloadable. United States District Court, D. Rhode Island. If Rhode Island followed the vested rights principle of choice of laws, as some of its older cases indicate it would, e.g., O'Reilly v. New York New England R.R., 16 R.I. 388, 17 A. Rusch Factors, Inc. v. Levin (1968) The courts in many states have followed the Restatement principle, including a court in Rhode Island in the leading case of Rusch Factors, Inc. v. Levin (1968). doi: 10.1016/j.aquaculture.2003.10.014 9-1-13. Rusch Factors, Inc. v. 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