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Hutchins and O'Neil, as general partners in the Haddon View Inves t ment Co., became limited partners in Car Wash Investments. The general par t ner in Car Wash was the Minit Man Development Company. Coopers and Lybrand were the accountants who handled the accounting work for both Minit Man and Car Wash. They pe r formed audits and prepared financial statements that allegedly r e vealed two healthy companies. Nevertheless, both Car Wash and Minit Man went out of business. As a result, Hutchins and O'Neil lost a total of $252,000.
They sued Coopers and Lybrand , alleging malpractice, breach of contract, concealment, fraud, and deceit in the accountants' work for Car Wash and Minit Man. Coopers and Lybrand argued that Hutchins and O'Neil could not sue them b e cause Car Wash and Minit Man were their cl i ents, not Hutchins and O'Neil. Were the accountants correct?
Haddon View Investment Co. v. Coopers and Lybrand, 436 N.E.2d 212 (OH).
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