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September 09, 2003


19th JDC Dismisses Bank's Suit Against Auditor

The Advocate reports that 19th JDC Judge Tim Kelly has dismissed a suit filed by Union Planters Bank against the Baton Rouge auditing firm of Postletwaite and Netterville alleging information in an audit led to its decision to extend a $25 million line of credit to Commercial Capitol Holdings Corp. The dismissal, however, comes with a caveat: Union Planters amended the suit to allege that a 1999 Louisiana law protecting auditors from lawsuits similar to the one in this case is unconstitutional. Accordingly, if the state law is found to be constitutional then the matter will be resolved, but if not, Kelly's dismissal will have no effect on the suit.

Posted by AJR at September 9, 2003 07:45 AM
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