case update

bankruptcy court nd il ed

3rd cir
In re: Teleglobe Communications Corp., No. 06-2915
In bankruptcy proceedings involving suits brought by a bankrupt company’s subsidiaries against Canada’s largest telecommunications company, which had previously owned the subsidiaries’ parent company, an order compelling production of certain attorney-client privileged documents is vacated and remanded as the district court’s factual findings did not support setting aside the parent company’s privilege in this case.

7th cir
Fehribach v. Ernst & Young LLP, No. 06-3366
In a suit charging a bankrupt company’s auditor with negligence and breach of contract in failing to include a going-concern qualification in an audit report, summary judgment for defendant is affirmed where: 1) an auditing firm has no duty to investigate matters external to a company in order to determine whether the company will continue to be a going concern; and 2) plaintiff’s suit was barred by the one-year statute of limitations in Indiana’s Accountancy Act.

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