Nat'l Wine & Spirits, Inc. v. Ernst & Young, LLP
Annotate this CaseA company hired an accounting firm to provide auditing services. During the years covered by the parties' agreement, an employee of the company committed fraud and theft, causing significant losses to the company. The company alleged negligence, breach of contract, and unjust enrichment against the accounting firm and demanded arbitration pursuant to the agreement. An arbitration panel found the accounting firm negligent and the company comparatively negligent. The company then filed the present suit, claiming the accounting firm committed deception because the documents the accounting firm produced during the arbitration were misleading. The trial court granted summary judgment in favor of the accounting firm. The Supreme Court affirmed, holding that issue preclusion barred the company's deception claim because the issue underlying the deception claim was the veracity of the documents produced at arbitration, which was necessarily decided by the arbitration panel.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.