Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

UNITED BANK OF KUWAIT v.BRIDGES

June 4, 1991

THE UNITED BANK OF KUWAIT, PLC, PLAINTIFF,
v.
JAMES M. BRIDGES, LTD. AND JAMES M. BRIDGES, DEFENDANTS.



The opinion of the court was delivered by: Robert P. Patterson, Jr., District Judge.

This an action for malpractice against a Virginia accountant and his accounting firm. Defendants move pursuant to Rule 12(b)(2) of the Federal Rules of Civil Procedure to dismiss the action for lack of personal jurisdiction. For the reasons set forth below, defendants' motion is granted.

BACKGROUND

The facts underlying this motion are not in dispute. Defendant James M. Bridges ("Bridges") is a certified public accountant who resides in the state of Virginia and is the general partner of James M. Bridges, Ltd., a five-person accounting firm with its only office in Dale City, Virginia.

On June 29, 1988 Bridges signed a letter of engagement with Southern Atlantic Mortgage, Inc. ("Southern Atlantic"), a Virginia mortgage broker, under which Bridges was to conduct an audit of Southern Atlantic for the fiscal years ending June 30, 1987 and June 30, 1988. Bridges Aff., Exh. A. The letter of engagement, entered into in Virginia, does not mention the purpose of the audit but Bridges testified that the audit was completed to show compliance with Housing and Urban Development ("HUD") regulations and for internal management purposes. Id.¶ 18; Defendants' Memorandum of Law and Supporting Exhibits (hereinafter "Def. Mem. of Law"), Exh. 2 at 123. Bridges performed all work necessary to complete the audit in the state of Virginia and on August 30, 1988 sent the certified financial statements to Southern Atlantic in Woodbridge, Virginia. Bridges Aff. ¶ 17; Def. Mem. of Law., Exh. 5.

Plaintiff United Bank of Kuwait, PLC ("UBK") is a British bank having offices in New York City. In October 1987, Southern Atlantic and UBK had entered into a Mortgage Warehousing Loan and Security Agreement ("the Security Agreement") under which UBK was to extend a $10 million revolving line of credit to Southern Atlantic to allow Southern Atlantic to finance and resell residential mortgage loans. Berrio Aff., Exh. A. The Security Agreement required Southern Atlantic to provide UBK within 120 days of the end of each fiscal year annual financial statements certified without qualification.

MARLENE:

PLEASE USE THIS COPY FOR ALL YOUR PURPOSES.

  THE STATEMENTS YOU SENT US WERE NOT WHAT WE HAD
  ISSUED TO SOUTHERN ATLANTIC.

ANY QUESTIONS, CALL US.

      SEBASTIAN
      JAMES M. BRIDGES, LTD.

Berrio Aff., Exh. C.

UBK renewed its Security Agreement with Southern Atlantic. However, on June 30, 1989, UBK declared Southern Atlantic in default under the Security Agreement and demanded immediate repayment. Southern Atlantic failed to repay its indebtedness resulting in a loss to UBK in excess of $2 million. Berrio Aff. ¶ 11.

The financial statements prepared by Bridges reflect that UBK was Southern Atlantic's largest lender. During the course of the audit, Bridges sent UBK a "Standard Bank Confirmation Inquiry" dated July 1, 1988 requesting information about Southern Atlantic's indebtedness under the line of credit. Berrio Aff., Exh. B. UBK returned the signed statement to Bridges on July 6, 1988. Bridges acknowledged at his deposition that he or his ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.