Opinion ID: 889195
Heading Depth: 1
Heading Rank: 8

Heading: professional negligence counti

Text: 31. Plaintiffs incorporate by reference the allegations contained in paragraphs 1 through 30 above. 32. As a certified public accounting firm, Eide Bailly had a duty to perform its professional obligations with the degree of learning, skill and judgment ordinarily possessed by members of the accounting profession and to perform any service undertaken in the manner a reasonably careful public accountant would do under the same or similar circumstances. 33. Eide Bailly failed to satisfy the standard of care imposed on public accounting firms as a matter of law. Therefore, Eide Bailly breached the applicable standard of care and such breach constitutes negligence. 34. GBCI relied on the representations in the audit reports prepared by Eide Bailly for IMC's 2004 and 2005 financial statements when it evaluated the purchase of CDC. 35. Eide Bailly knew, or had reason to know that GBCI or other potential purchasers of CDC would rely on Eide Bailly's audits of FCB. 36. From year-to-year, FCB relied on Eide Bailly's annual audits of IMC in making its credit decisions concerning IMC. 37. Eide Bailly knew that audited financial statements were a requirement of the Warehouse Agreement between IMC and FCB. Eide Bailly knew or should have known that FCB would rely on the audited financial statements of IMC in making its credit decisions. 38. It was reasonably foreseeable that FCB would rely on Eide Bailly's audited financial statements of IMC in evaluating its credit decisions concerning IMC. 39. It was reasonably foreseeable that third parties such as GBCI would rely on Eide Bailly's audited financial statements of IMC in evaluating its potential purchase of CDC and in determining the purchase prise. 40. As a result of Eide Bailly's breach of the standard of care owed by public accountants, WSB, as successor to FCB, and GBCI have been damaged in amounts to be proven at trial. WHEREFORE, Plaintiffs pray as follows: 1. That plaintiffs recover damages in an amount to be determined at trial; and 2. For such further relief as the Court deems appropriate.