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1
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VERIFIED ANS
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EXTRACTED KEY WORDS
PARAGRAPH COMPLAINT FINANCIAL STATEMENTS ADMITS ALLEGATIONS JWP YORK ARONOFF PLAINTIFFS CONSOLIDATED FINANCIAL STATEMENTS DENIES KNOWLEDGE INFORMATION SUFFICIENT MELVIN ERNST LLP PLAINTIFFS PURPORT FRAUD NEGLIGENT MISREPRESENTATION PREPARED FINANCIAL STATEMENTS BUSINESS AUDIT JOHN LABARCA PERSONAL FRIEND HIGHEST CORPORATE OFFICERS THIRD SENTENCE UNQUALIFIED REPORT CONNECTION RETROSPECTIVE REVIEW |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK #f
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -X
MELVIN S. ARONOFF and lUNA PATIUCIA
ZILBERMANN, as Independent Executrix of the Last :
Will and Testament o f ANDRE H. ZILBERMANN,
Plaintiffs, Index
F I
ERNST & YOUNG,
_ _ _ _ _ I _ - _ _ - - _ - - - - - _ - _ _ _ _ l _ _ _ _ _ l _ _ _ _ _ _ _ _ _ -X COUNTY
Defendant Ernst & Young LLP ("E&Y"), by its attorneys, Schulte Roth & Zabel ,
LLP and the General Counsel's Office of E&Y, for its answer to the Complaint, (the
"Complaint"), states as follows:
I. As to the first sentence of paragraph 1 of the Complaint, admits
plaintiffs purport to bring an action for fraud against E&Y; denies that the action emompasses a
claim for negligent misrepresentation; and denies that it committed any fraud or negligent
misrepresentation. Denies the second sentence of paragraph 1 of the Complaint.
2. Denies the allegations contained in paragraph 2 of the Complaint,
admits that JWP went into bankruptcy.
3. Denies knowledge or information sufficient to form a belief as to
o f the allegations of paragraph 3 of the Complaint, except denies that plaintiff Melvin S. Aronoff
("Aronoff ') relied on the JWP financial statements reviewed by E&Y, and denies that E&Y
prepared financial statements for JWP.
4. Denies knowledge or information sufficient to form a belief as to
of the allegations contained in paragraph 4, except denies that Andre H. Zilbermam
("Zilbermann") relied on the JWP financial statements reviewed by E&Y, and denies that E&Y
SNIPPETS:
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2
.
TRIAL SCHEDULING ORDER
|
EXTRACTED KEY WORDS
PARTIES PARTY COURT YORK DIRECTIONS FACTS PRIOR EXHIBITS COUNTY IAS PLAINTIFF MISCELLANEOUS DIRECTIONS STIMLATED FACTS STIPNLATINN GOVERNING DISPUTE IMPEACHMENT DEPOSITION CPLR WITNESSES COMI ATTENTION COUNSEL PRIOR OPPOSING REASON CALLING NONCOMPLIANCE EXCLUSION PROPOSED TESTIMONY ADMISSIBILITY |
. 'I
. .
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK: IAS PART 49 '
INDEX NO.
/I6 731
- 7.f
TRIAL SCHEDULING
ORDER
The parties having conferred among themselves and with the court, it is
' *
hereby ordered:
1. Note of Issue:
Plaintiff is to file a Note of Issue on or before
2. Trial Date:
The trial of this action shall commence on
3. Miscellaneous Directions:
1
I
SNIPPETS:
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3
.
TRIAL SCHEDULE ORDER
|
EXTRACTED KEY WORDS
PARTIES WITNESSES STIPULATION PRIOR PARTY EXHIBITS COURT FACTS STIPULATION GOVERNING ADMISSIBILITY DISPUTE SERVE IMPEACHMENT DEPOSITION CPLR ATTENTION COUNSEL PRIOR OPPOSING REASON CALLING NONCOMPLIANCE EXCLUSION PROPOSED TESTIMONY AUTHENTICITY |
.
The parties having conferred among themselves and with the court, it is
hereby ordered:
1. Note of Issue:
Plaintiff is to file a Note of Issue on or before 27. /f$'r.
/ -
SNIPPETS:
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4
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TITLE ACTION OF PROCEEDIN
|
EXTRACTED KEY WORDS
PURSUANT PLAINTIFF DEFENDANT |
46-3084R-lOOM92
COUNTY CLERK, NEW YORK COUNTY
Application for INDEX NUMBER pursuant to Section 801
C.P.L.R.
FEE $170.00
Spaces below to be TYPED or PRINTED by applicant
TITLE OF ACTION OR PROCEEDING
CONSUMER
i.Ielvin S . Aronoff and Rina Patricia CREDIT
TRANSACllON
THIRD
PARTY
ACTION
IF THIRD PARTT ACTION
MAIN INDEX NO.
I>ef e n d a n t .
6. Application for Index Number filed by:. Plaintiff ff Defendant 0
C. Date of Service of Summons -.. . Is Summons now being
-.
Y E S B N O 0 \..\
D. Was a previous Third Party Action filed? YES 0 NO El --
Date Filed 5211y 5 , 1 9 9 5
SNIPPETS:
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5
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STATEMENT
|
EXTRACTED KEY WORDS
YORK ZILBERMANN NEGLIGENT MISREPRESENTATION DISMISS PLAINTIFFS COURT MELVIN ARONOFF ANDRE REQUEST DISTRICT LAW TTZILBERMANNTT CPLR PLAINTIFFS OPPOSE MOTION AMEND UNITED STATES DISTRICT SOUTHERN DISTRICT OFFICERS DIRECTORS ALLEGING FEDERAL SECURITIES COMMON LAW FRAUD AIDING ABETTING FRAUD RESPONSE SEEKING MEMORANDUM DISCONTINUANCE |
DATED:
c
I
f f t I c
2
P 2
c
a
0
a
8
S.UPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
_ _ - - - _ _ _ l - - _ _ l - _ _ _ _
MELVIN S. ARONOFF and RINA PATRICIA
ZILBERMANN, an Independent Executrix
of the Last Will and Testament of
ANDRE H. ZILBERMANN,
Plaintiffs,
-against-
ERNST & YOUNG,
t O%, Ti;,,..
::
SNIPPETS:
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7
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REQUEST FOR JUD INTERVENT
|
EXTRACTED KEY WORDS
ACTION/PROCEEDING SPECIFY RELIEF PROCEEDING AVENUE ATTORNEY REQUEST REAL PROPERTY RECOVERY LLP ZILBERMANN ERNST NATURE JUDICIAL INTERVENTION MALPRACTICE TORTS ARBITRATION SPECIAL PROCEEDINGS UCC SALO NEGOTIABLE INSTRUMENTS ASBESTOS BREAST IMPLANT TAX CERTIORARI NEGLIGENCE FORECLOSURE CONDEMNATION LANDLORDITENANT TRUSTS |
.
-
399- Request tbrjudicinl intcrvention, 22 NYCRR 202.6,5-93.
62
..
M U m E
.........
MELVIN S. ARONOFF znd RITA PATRICIA ZILBERMANN, as
of ANDRE H. . ZILBERMANN, : . ,i 'l.
DEFENDANT(S):
. ' .I i- , I-\ ,
. I
ERNST & YOUNG
,-
,.-
SNIPPETS:
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8
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REP OF DF MTD
|
EXTRACTED KEY WORDS
PARTICULARITY SUPREME COURT COUNTY YORK MELVLN ARONOFF RITA PATRICIA ZILBERMANN EXECUTRIX TESTAMENT ERNST AUTHORITIES FAILURE ALLEGE PROXIMATE CAUSATION CAUSED PLAINTIFFS LOSSES CPLR |
-a
a SUPREME COURT OF THE STATE OF NEW Y O N
COUNTY OF NEW YORK
__---___-____r _r _r _________________I____--------------------" -- X
MELVlN S. ARONOFF and RITA
PATRICIA ZILBERMANN, as Independent
a Executrix of the Last Will and Testament
of ANDRE H. ZILBERMANN, Index No. 95
Plaintiffs,
l. -against-
ERNST & YOUNG,
REPLY MEMORANDUM OF LAW OF DEFENDANT
ERNST & YOUNG IN FURTHER SUPPORT OF ITS
MOTION TO DISMISS THE COMPLAINT
1. ,
SNIPPETS:
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9
.
REP MEMOF LAW OF DEFE&Y
|
EXTRACTED KEY WORDS
ZILBERMANN PLAINTIFFS PARTICULARITY SUPREME COURT COUNTY MELVIN ARONOFF RITA PATRICIA ZILBERMANN EXECUTRIX TESTAMENT ANDRE ERNST MEMORAMDUM LAW DEFENDANT MISREPRESENTATION CLAIM FAILURE ALLEGE PROXIMATE CAUSATION CAUSED PLAINTIFFS LOSSES FRAUD-ON-THE CPLR |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
--______-____-------__________r______rr_----------------- X
MELVIN S. ,ARONOFF and RITA
PATRICIA ZILBERMANN, as Independent
Executrix of the Last Will and Testament
0 of ANDRE H. ZILBERMANN,
Index No. 95 1 1673 1
Plaintiffs,
SI- 7 .
I
-against -
a-
ERNST & YOUNG,
Defendant.
+-
U .. I
REPLY MEMORAMDUM OF LAW OF DEFENDANT
ERNST & YOUNG IN FURTHF,R SUPPORT OF ITS
MOTION TO DISMISS TEE COMPLAJNT
SCHUL,TE ROTH & ZABEL
900 Third Avenue
New York, New York
(212) 758-0404
ERNST & YOUNG, LLP
General Counsel's
787 Seventh Avenue
New York, New York 10019
(212) 773-3800
TABLE OF CONTENTS
rn
SNIPPETS:
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10
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PLF MEM OPP MTD
|
EXTRACTED KEY WORDS
YORK ZILBERMANN ERNST MOTION DISMISS SUPREME COURT COUNTY ARONOFF RINA PATRICIA INDEPENDENT EXECUTRIX TESTAMENT ANDRE MEMORANDUM OPPOSLTION FACTS FAILURE PLEAD SPECIFICITY DOCTRINE COLLATERAL ESTOPPEL STRINGENT STANDARDS FRAUD SATISFY CPLR YOUNG CAUSED THEXR CAUSED THEXR LOSSES |
)-3
SUPREME COURT OF THE STATE OF NEW YORK X
COUNTY O F NEW YORK
___________- e_________________c__-------
MELVIN s . ARONOFF and RINA PATRICIA
ZILBERMANN, as Independent Executrix
of the Last Will and Testament Of
ANDRE H . ZILBERMANN, plaintiffs,
V .
ERNST & YOUNG,
PLAINTIFFS' MEMORANDUM OF L A W
IN OPPOSlTION TO DEFENDANT'S MOTION TO DISMISS
TABLE OF CONTENTS
PRELIMINARY STATEMENT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ARGUMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
POINT I
DEFENDANT'S ARGUMENT REGARDING FAILURE
TO PLEAD WITH SPECIFICITY IS BARRED BY
THE DOCTRINE OF COLLATERAL ESTOPPEL . . . . . . . . . . . . . . . . . . . . . . 8
$
I
POINT II 0
Q
DEFENDANT HAS NOT SATISFIED THE g; g
STRINGENT STANDARDS OF A MOTION TO DISMISS . . . . . 4.r~
SNIPPETS:
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11
.
PLF MEM OP MTD
|
EXTRACTED KEY WORDS
DEFENDANT PLAINTEFS MEMORANDUM OPPOSITION MOTION |
. . . . .
. . .
. .
Index No. 95/11673 1
V IAS Part 49
Justice Herman Cahn
ERNST & YOUNG,
Defendant.
PLAINTEFS' MEMORANDUM OF I
IN OPPOSITION TO DEFENDANT'S MOTION
ZWERLING, SCHACHTER, ZWERLING
& KOPPELL, LLP
767 Third Avenue
New York, NY 10017
(212) 223-3900
SNIPPETS:
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12
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PLF MEM FOR CRSSMOT FOR P
|
EXTRACTED KEY WORDS
SUMMARY JUDGMENT AUDIT RELIANCE DEFENDANT MOTION MISREPRESENTATION SCIENTER LOSSES ERNST MEMORANDUM LAW SUPPORT CROSS PARTIAL SUMMARY JUDGMENT OPPOSITION FINDINGS DOCTRINE COLLATERAL ESTOPPEL CAUSATION DEFENDANT FAILS CONNECTION AUDIT REPORT STALE GUARANTEE OBVIATE PLAINTIFFS AUDIT REPON STOCK PRICE DECLINE |
Plaintiffs, I ndex No. 95/116731
V. I AS Part 49
J ustice Herman Cahn
ERNST & YOUNG,
Defendant.
PLAINTIFFS' MEMORANDUM OF LAW
IN SUPPORT OF CROSS -MOTION
FOR PARTIAL SUMMARY JUDGMENT
AND
IN OPPOSITION TO DEFENDANT'S
MOTION FOR SUMMARY JUDGMENT
ZWERLING, SCHACHTER, &
ZWERLING, LLP
767 Third Avenue
New York, NY 10017
(2 12) 223-3 900
TABLE OF CONTENTS
PRELIMINARY STATEMENT ............................................... . 1
STATEMENTOFFACTS .................................................. - 2
The A USA Decision and Findings of Fact ........................... 11
POINT I
PLAINTIFFS ARE ENTITLED T O SUMMARY
JUDGMENT ON THE ELEMENTS OF
MATERIAL MISREPRESENTATION AND SCIENTER ......................
SNIPPETS:
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13
.
PERSCH AFFIDAVIT
|
EXTRACTED KEY WORDS
PLAINTIFFS YORK COURT AFFIDAVIT AMENDED COMPLAINT ERNST MOTION DISMISS EXHIBIT COUNTY ZILBERMANN SWORN LAW SOUTHERN DISTRICT FEDERAL COUA ACTION COUA ACTION ALLEGING FEDERAL SECURITIES LAW COMMON LAW FRAUD NEGLIGENT MISREPRESENTATION ENTIRETY PORTION TRANSCRIPT FEDERAL COURT RULING REINSTATEMENT PENDING WIKA ANDERSON HBK YORL YORK CAUNTY |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
- - - - - - - - - - - - - I - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ II ___- - - - - - - - - - - -
MELVIN S . ARONOFF and RITA
PATRICIA ZILBERMANN, as Independent
Executrix of the Last Will and Testament
of ANDRE H. ZILBERMANN,
Plaintiffs,
-against-
ERNST & YOUNG,
Defendant.
COUNTY OF NEW YORK )
MARTIN L. PERSCHETZ, being duly sworn, deioses and states:
1. I am a member of the bar of this Court and of the firm of Schulte
which, together with the General Counsel's Office of Ernst & Young, represents defendant Ernst
& Young, LLP ("E&Y"). This affidavit is respectfully submitted in support of E&Y's motion
to dismiss the plaintiffs' Complaint. Annexed to this affidavit as Exhibit A is a copy
plaintiffs' Complaint.
2. On March 29, 1994, plaintiffs commenced an action in United
Court for the Southern District of New York against, among others, E&Y. On August 26,
1994, plaintiffs filed an Amended Complaint in the federal coua action alleging, among other
things, federal securities law claims and common law fraud and negligent misrepresentation
claims against E&Y. Annexed to this affidavit as Exhibit B is a copy of plaintiffs' federal
Amended Complaint.
3. On October 10, 1994, E&Y moved to dismiss plaintiffs'
Complaint. On January 6 , 1995 , plaintiffs' federal Amended Complaint was dismissed as
SNIPPETS:
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14
.
NOTICE OF ENTRY SUM JUDGE
|
EXTRACTED KEY WORDS
COUNTY ZWERLING EXECUTRIX TESTAMENT ANDRE ZILBERMANN SUPREME COURT IAS ERNST ENTERED THEREAFTER COUNTY CLERK SCHACTHER LLP ROBIN ESQ ATTORNEYS PLAINTIFFS MELVIN ARONOFF RINA PATRICIA ZILBERMANN ZILBEMANN |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK: IAS PART 49
__----___----____---_fl________f________~----------------------
X
MEL.VIN S. ARONOFF and RINA PATRICIA :
ZILBERMANN, as Independent Executrix of the :
Last Will and Testament of ANDRE H.
ZILBERMANN
Index No.116731/95
Plaintiffs, ( C a b J.)
V.
ERNST & YOUNG,
PLEASE TAKE NOTICE that the within is a true copy of the Order filed on April
26, 1999 and entered thereafter in the Office of the County Clerk of New York County.
Dated: New York, New York
April@, 1999
900 Third Avenue /
New York, New York 10022
(212) 756-2000
Attorneys for Defendant Ernst & Young
To: ZWERLING, SCHACTHER & ZWERLING, LLP
Robin F. Zwerling, Esq.
767 Thrd Avenue
New York, New York 1001 7
(212) 223-3900
Attorneys for Plaintiffs Melvin S. Aronoff
and Rina Patricia Zilbermann, as Independent
Executrix of the Last Will and Testament
of Andre H. Zilbemann
SRZNY\554108vl
SNIPPETS:
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15
.
NOT OF MOT
|
EXTRACTED KEY WORDS
PURSUANT CPLR SUPPORT COUNSEL PLAINTIFFS AFFIDAVITS ZWERLING COURT MOTION SUPPORT OFFICE SUPPORT OFFICE COURTROOM COUNTY COURTHOUSE FORENOON THEREAFTER DISMISSING PLAINTIFFS COMPLAINT PURSUANT FAILURE PLEAD FRAUD REQUISITE SPECIFICITY PURSUANT ACCORDANCE STIPULATION PARTIES ANSWERING AFFIDAVITS PAPERS WHEREUPON SCHACHTER KOPPELL LLP ATTORNEYS |
memorandum of law submitted herewith and upon all the pleadings submitted herein, the
undersigned will move this Court at the Motion Support Office Courtroom, County Courthouse,
60 Centre Street, Room 130, New York, New York on the 30th day of November, 1995 at 9:30
o'clock in the forenoon of that day or as soon thereafter as counsel may be heard, for an Order
dismissing plaintiffs' Complaint pursuant to CPLR 3211(a)(7) and for failure to plead the fraud
._ .
claim with requisite specificity pursuant to CPLR 3016(b) and in accordance with CPLR 8 3013.
PLEASE TAKE FURTHER NOTICE that pursuant to the Stipulation among counsel for
the parties, dated July 21 , 1995, answering affidavits, if any, are required to be served upon
the undersigned at least forty-five (45) days following service of this notice and
papers; whereupon any reply affidavits shall be served within thirty (30) days,
Dated: New York, New York
September 15, 1995
Respectfully submitted,
SCHULTE ROTH & ZABEL
900 Third Avenue
New York, New York 10022
(212) 758-0404
ERNST & YOUNG, LLP
General Counsel's Office
787 Seventh Avenue
New York, NY 10019
(212) 773-3800
Attorneys for Defendant Ernst & Young
TO: ZWERLING, SCHACHTER, ZWERLING
& KOPPELL, LLP
767 Third Avenue
New York, New York 10017
(212) 223-3900
Attorneys for Plaintiffs
SNIPPETS:
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16
.
MEM OF LAW OF DEF MTD
|
EXTRACTED KEY WORDS
POINT1 PLAINTIFFS ALLEGE SUPREME COURT YORK MELVIN ARONOFF RITA PATRICIA ZILBERMANN EXECUTRIX TESTAMENT ANDRE DEFENDANT MEMORANDUM LAW PRELIMINARY STATEMENT NEGLIGENT MISREPRESENTATION CLAIM COMPLAINT FAILS PRIVITY ERNST LOSSES FRAUD CLAIMS FAILURE SATISFY CPLR |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK *-
325
.............................................................. X
MELVIN S. ARONOFF and RITA
PATRICIA ZILBERMANN, as Independent
Executrix of the Last Will and Testament
of ANDRE H. ZILBERMANN,
4
Plaintiffs, Index No. 95 1 1673 1
-against-
ERNST & YOUNG,
Defendant.
MEMORANDUM OF LAW OF
ERNST & YOUNG IN SUPPORT OF
ITS MOTION TO DISMISS THE COMPLAINT '
TABLE OF CONTENTS
Table of Authorities
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preliminary Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Argument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Point1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SNIPPETS:
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17
.
MEM OF LAW OF DEF E&Y MTD
|
EXTRACTED KEY WORDS
POINT1 SUPREME COURT COUNTY YORK MELVIN ARONOFF RITA PATRICIA ZILBERMANN EXECUTRIX TESTAMENT ANDRE AUTHORITIES PRELIMINARY STATEMENT ERNST LOSSES POINTIII SATISFY CPLR |
c
SUPREME COURT OF THE STATE OF NEW Y O N
-a COUNTY OF NEW YORK
---------------_____l________________l__---------------------- X
MELVIN S. ARONOFF and RITA
PATRICIA ZILBERMANN, as Independent
Executrix of the Last Will and Testament
of ANDRE H. ZILBERMANN,
a
Plaintiffs, I , ex No. 95116731
1
-against- '+C
a E W S T & YOUNG,
Defendant. SEP 1 5
0
e
MEMORANDUM OF LAW OF DEFENDANT
ERNST & YOUNG IN SUPPORT OF
ITS MOTION TO DISMISS THE COMPLAINT
TABLE OF CONTENTS
Table of Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Preliminary Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Argument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Point1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SNIPPETS:
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18
.
MEM FOR MSJ
|
EXTRACTED KEY WORDS
PLAINTIFFS JWP STOCK AUDIT REPORT GUARANTEE ZILBERMANN MATERIAL FACT PURCHASES BRANDT ENGINEERING STOCK PRICE GUARANTEE GENUINE INDEPENDENT EXECUTRIX TESTAMENT ANDRE ENCOUNTERS FINANCIAL DISASTER PLAINTIFFS SELL REACTION DOWNTURN LEGAL ACTIONS RECOVER BREACH JUDGE CONNER LOSSES INSTITUTIONAL NOTEHOLDERS SUMMARY JUDGMENT JUSTIFIABLE RELIANCE MISREPRESENTATION EVIDENCE WHATSOEVER PLAINTIFFS ACCEPTED JWP |
SUPREME COURT OF THE STATE OF NEW YOFX
COUNTY OF NEW YORK
_ _ I _ _ - - - _ - - - _ - - _ _ _ - - - - - - - - - - - - - - - - - - - - - - X
MELVIN S. ARONOFF and *UNA PATRICIA
ZILBERMANN, as Independent Executrix of the
Last Will and Testament of ANDRE H. ZILBERMANN,
Plaintiffs,
-against-
ERNST & YOUNG,
Memorandum of Law in Support of Motion of
Defendant Ernst & Young for Summary Judgment
SCHULTE ROTH &
900 Third Avenue
New York, New York
(212) 756-2000
ERNST & YOUNG LLP
General Counsel's
787 Seventh Avenue
New York, New York
(212) 773-3800
Attorneys for
Q Ernst & Young
TGBLE OF CONTENTS
Prellrnlnary
. . Statement
SNIPPETS:
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19
.
E&Y MOVE SUM JUDGE
|
EXTRACTED KEY WORDS
JWP COURT MELVIN ARONOFF RINA PATRICIA TESTAMENT ANDRE ERNST DEFENDANT JUDGEMENT PLAINTIFFS MISREPRESENTATION ACCOUNTING MATERIAL MISREPRESENTATION SCIENTER FINDINGS FEDERAL COURT LLARONOFFLL INDEPENDENT EXECUTRIX RECOVER DAMAGES CLAIMED FRAUD NEGLIGENT MISREPRESENTATION AUDIT IIJWP FINANCIAL STATEMENTS ACCOUNTING FIRM RELEVANT TIME-PERIOD ORIGINAL BUSINESS WATER SUPPLY COMPANY |
SUPREME COURT OF THE STATE OF e
YORK
COUNTY O F NEW YORK: IAS PART 49
_ _ _ _ _ _ _ _ _ _ - - - - - - _ _ _ - x
MELVIN S. ARONOFF and RINA PATRICIA
ZILBERMANN, as Independent Executrix of Index No. 116731/95
the Last Will and Testament of ANDRE H.
ZILBERMANN,
Plaintiffs,
-against- c
ERNST & YOUNG,
CAHN, J. :
Defendant Ernst & Young (IIE&Y1l) mov,es,
f o r summary
judgment dismissing the complaint (CPLR 3212). Plaintiffs cross-
move for partial summary judgment on the issues of material
misrepresentation and scienter, based upon the findings of a
federal court in a related case.
FACTS
Plaintiffs Melvin Aronoff (llAronoffll) and Rina Patricia
Zilbermann as Independent Executrix of the Last Will and
Testament of Andre Zilbermann (l'Zilbermannll) commenced this
action to recover damages for claimed fraud and negligent
misrepresentation with respect to the audit of JWP, Inc.'s
(IIJWP") 1990 financial statements by defendant E&Y. E&Y is a
large accounting firm, and at the times in question, was JWP's
independent accountant.
At the relevant time-period, JWP was a publicly held
corporation. Its original business was as a local water supply
company. During the late 1 9 8 0 ' s and early 1 9 9 0 1s , JWP was
SNIPPETS:
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20
.
COMSION
|
EXTRACTED KEY WORDS
SUPREME COURT OATH WITNESS COUNTY ZILBERMANN ERNST AUTHORIZE ADMINISTER LAWS NEVADA MELVIN ARONOFF RINA PATRICIA TESTAMENT ANDRE COMMISSIONER PURSUANT YOUNG TOUCHING CONTROVERSY CPLR TESTIMONY WRITING EXHIBITS CLERK REGISTERED MAIL PREMISES APPLICABLE LAW HON HERMAN CAHN |
At the IAS, Part 49 of
the State of New York,
County of New York,
Centre Street, New
day o p e
SUPREME COURT OF THE STATE OF NEW YOFX
COUNTY OF NEW YOFK
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ r X
MELVIN S . ARONOFF and RINA PATRICIA
ZILBERMANN, as Independent Executrix of the Last :
Will and Testament of ANDRE H. ZILBERMANN,
Plaintiffs, Index
V.
ERNST & YOUNG,
SUPREME COURT OF THE STATE OF NEW Y O U , COUNTY OF NEW YORK TO:
Any duly qualified court reporter, or other officer authorized to administer
by the laws of the State of Nevada --
KNOW YE, that we, with full faith in your prudence and competency, have
appointed you commissioner, and by these present do authorize you to administer an oath to
compel David James Primuth, whose address is 637 Woodridge Circle, Incline Village, Nevada,
89452, as a witness in an action pending in our Supreme Court of the State of New York, New
York County, among Melvin S. Aronoff and Rina Patricia Zilbermann, as Independent Executrix
of the Last Will and Testament of Andre H. Zilbermann, plaintiff, and Ernst & Young,
defendant, to come before you for the purpose of taking said witness's examination under oath,
and producing certain documents, described in the attached Schedule A, in connection therewith.
SRZNY\278295vl
SNIPPETS:
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21
.
COMPLANT
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EXTRACTED KEY WORDS
BRANDT DEFENDANT PLAINTIFFS ANDRE ZILBERMANN SECURITIES ARONOFF ACCOUNTING STOCK BUSINESS TEXAS YORK ERNST MELVIN ESTATE IRREGULARITIES RESIDENT DALLAS PRESIDENT CAPACITY MAJOR SHAREHOLDER ACCEPTED SECURITIES MERGER TESTAMENT LAWS ZILBEMANN PRACTICE ACCOUNTING BUSINESS OFFCES PARK AVENUE |
Plaintiffs, COMPLAINT
V.
ERNST & YOUNG,
Schachter, Zwerling & Koppell, LLP, complain of defendant Emst & Young upon information
and belief, except as to the allegations which pertain to the plaintiffs, as follows:
1. This is an action brought on behalf of Melvin S. Aronoff and the estate
Andre H. Zilbermann against the accounting firm of Ernst & Young ("F&Y") for fraud and
negligent misrepresentation. Plaintiffs, in reliance on the fmancial statements prepared and/or
endorsed by defendant for the year ending 1990 and on those reviewed by defendant for the first
quarter of 1991 were induced to accept securities of defendant's client JWP, Inc. ("JWP ") at
a price of $17 per share as payment for the sale of the stock in plaintiffs' business to JWP.
2, The securities of JWP subsequently became worthless and JWP was forced into
bankruptcy as the direct and proximate result of the disclosure of massive financial
These fmmcial irregularities existed for a period extending from 1987 to 1992, were known to
defendant E&Y, were knowingly covered up and disseminated by E&Y, and were known to
E&Y to be relied on by plaintiffs.
PARTIES TO THE ACTION
Plaintiffs
3. Melvin S. Aronoff ("Aronoff ') is a resident of Dallas, Texas. During the period
covered by this action he was Senior Vice President of Brandt Engineering Co. ("Brandt"). In
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COMMISSION
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EXTRACTED KEY WORDS
SUPREME COURT OATH WITNESS COUNTY RINA PATRICIA ZILBERMANN AUTHORIZE ADMINISTER LAWS TEXAS MELVIN ARONOFF INDEPENDENT EXECUTRIX TESTAMENT ANDRE COMMISSIONER ERNST PURSUANT CONTROVERSY CPLR TESTIMONY WRITING EXHIBITS CLERK REGISTERED MAIL PREMISES APPLICABLE LAW HON HERMAN CAHN JUSTICES |
t
At the
the
County
Centre
17 day
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
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MELVIN S. ARONOFF and RINA PATRICIA
ZILBERMANN, as Independent Executrix of
Will and Testament of ANDRE H.
. . 'Plaintiffs, co 8
V.
ERNST & YOUNG, -
Defendant.
SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK TO:
Any duly qualified court reporter, or other officer authorized to
by the laws of the State of Texas --
KNOW YE, that we, with full faith in your prudence ardcompetency, have
appointed you commissioner, and by these present do authorize you to administer an oath to
compel Charles Barry Brown, whose address is 305 Princess Lane, Sunrise Beach, Texas 78643,
as a witness in an action pending in our Supreme Court of the State of New York, New York
County, among Melvin S. Aronoff and Rina Patricia Zilbermann, as Independent Executrix of
the Last Will and Testament of Andre H. Zilbermann, plaintiff, and Ernst & Young, defendant, to
come before you for the purpose of taking said witness's examination under oath, and producing
certain documents, described in the attached Schedule A, in connection therewith.
. .
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