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1
.
REP TO COUNTERCLAIM
|
EXTRACTED KEY WORDS
YORK NOMINEES MARWICK MANENTI |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
MARTIN EFFRON (individually and
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as
his nominees),
Plaintiffs,
-against-
PEAT MARWICK MAIN & CO. and STEVEN
MANENTI,
Defendants.
MARTIN EFFRON, by his attorneys, Spector
Feldman, as and for his reply to the llFirstll Counterclaim
Against Martin Effron, by defendant Peat Marwick Main & Co.,
dated June 21, 1991, alleges as follows:
1. Denies knowledge or information Sufficient
a belief as to the truth of the allegations contained
Paragraph 1 of said Counterclaim.
2. Denies each and every allegation contained
Paragraphs 2 and 3 of said Counterclaim.
WHEREFORE, plaintiff Martin Effron demands
dismissing the said Counterclaim, together with the
disbursements of this action, including reasonable
r
t ,
fees, and such other and further relief as to
seem just and proper.
Dated: New York, New York
August 16, 1991
SNIPPETS:
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2
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REP TO COUNTER CLAIM
|
EXTRACTED KEY WORDS
COUNTY SUPREME COURT PEAT MARWICK MANENTI RISE SHIFRA SHAMANSKY DULY SWORN DEPOSES COUNTERCLAIM |
rss C:lWPDOCSlJCDlO5032-Ol/REPI.Y
.
SUPREME COURT OF THE STATE: OF NEW YORK
COUNTY OF NEW YORK
MARTIN EFFRON (individually and
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as
his nominees),
Plaintiffs,
-against-
PEAT MARWICK MAIN & CO. and STEVEN
MANENTI,
Defendants.
--------------------------------------x
MARTIN EFFRON, by his attorneys,
Feldman, as and for his reply to the "First"
Against Martin Effron, by defendant
~
dated June 21, 1991, alleges as
1. Denies knowledge or
orm
a belief as to the truth of the
Paragraph 1 of said Counterclaim,
2. Denies each and every allegation
Paragraphs 2 and 3 of said Counterclaim.
WHEREFORE, plaintiff Martin
dismissing the said Counterclaim,
disbursements of this action,
SNIPPETS:
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3
.
MEM SUPP DEF MTSJ
|
EXTRACTED KEY WORDS
SUPREME COURT COUNTY COUNSEL JUDGEMENT ASSERT CLAIMS PEAT MARWICK BANKRUPT CORPORATION REPORT DAMAGES |
l
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
- - - - - - - - - - - -. - - - - - - - x
MARTIN EFFRON, et al., : Index No. 11107/91
l
Plaintiffs, : IAS Part 10
-against-
PEAT MARWICK MAIN & CO., et al., : HONORABLE BEATRICE
r)
Defendants. :
- --- ----- ----- ---_ - x
MEMORANDUM IN SUPPORT OF
DEFENDANT'S MOTION FOR
PARTIAL SUMMARY JUDGMENT
WILLKIE FARR &
One Citicorp Center
153 East 53rd Street
New York, New York
(212) 935-8000
Of Counsel,
Attorneys for
Michael R. Young KPMG Peat Marwick
l
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
- - - ----- - - - -.----u--x
a MARTIN EFFRON, et al.,
SNIPPETS:
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4
.
MEM OPP DEF MTSJ
|
EXTRACTED KEY WORDS
RECOVERY COUNTY NOMINEES MARWICK MANENTI AUDIT BAR BANKRUPTCY ATTENTION PERIOD ENDING FINANCING PLACEMENT LTCLEANVT REPORT CARE BASIS BOCA BANK MHT BRAUN JURY JUR DAMASES ENTIRETY COUNSEL MEMORANDUM OPPOSITION MOTION SUMMARY JUDGMENT SWORN ANNA PIEDATTTWI |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
--------------------------------------x
MARTIN EFFRON (individually and
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as Index
his nominees),
Plaintiffs,
-against-
PEAT MARWICK MAIN & CO. and STEVEN
MANENTI,
Defendants.
--------------------------------------x
MFJ4ORANDUM IN OPPOSITION TO
DEFENDANT'S MOTION FOR
PARTIAL SUMMARY JUDGMENT
l SPECTOR, SCHER, FELDMAN &
Attorneys for Plaintiffs
655 Third Avenue
New York, New York 10017
l Of Counsel:
Jeffrey C.
l
6
c
-
B
SNIPPETS:
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5
.
KISLIN AFF
|
EXTRACTED KEY WORDS
GUARANTEE YORK BOCA EFFRON SAM PAID MONEY BOCA BANK DANNENBERG ECLIPSE LOAN MONE PSI PEAT COMPCO SERVICES EXACT DOCUMENL DEFENSE ATTORNEYS DEFENDANTS RUDOLPH KERN WIFE WITNESS DISTINCTION SETTLE HANOVER MIN-U-SCRIPB MARTIN EFFRON DEPOSLTBN |
In The Matter Of:
Effron v. Peat Marwick
Sum Kidin
June 4, 1993
Compco Services
15 East 40TH St.
New York, NY 10016
(212) 685-8200
Ongtnal File SKOGO493 VI. 202 Pages
Word Index included with this Min-U-Scripb
: . .
`- :
111
f2-j SUPREME COURT OF THE STATE OF NEW YORK
Y STlPUlATElJ AND
p] COUNTY OF NEW YORK
ween thE, attorneys for the
PI
herein, that al rbMs
[q MARTIN EFFRON (bdtvtduafty and
bcfudtng the rfght to
[s] through First KJM Corp., as hb
except as to lorm. or
py nominee) and SEMYON KISLIN
rry at thb
[a] (individually and through A.E.C.
d and, h addftbn, the
[s] Trading Co. and Ludrnib Kblln,
SNIPPETS:
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6
.
KISLIN AFF
|
EXTRACTED KEY WORDS
COUNTY MOTION SWORN SUPREME COURT NOMINEES MANENTI REPAID FUNDS ENTIRETY LBTH OPPOSITION YORK COUNTY COMMISSION COUNTY COMMISSION EXPIRES |
%
EC: JDC\D5032.DDl\LEGDOCS\KISLIN.AFF t
I
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
------------------------------x
MARTIN EFFRON (individually and
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as
his nominees),
Plaintiffs,
-against-
PEAT MARWICX MAIN & CO. and STEVEN
MANENTI,
Defendants.
--------------------------------------x
STATE OF NEW YORK ) 1 ss. :
COUNTY OF NEW YORK )
SEMYON KISLIN, being duly sworn, deposes and
1. I am one of the two plaintiffs
entitled action, and I am fully familiar
forth herein. I make this affidavit in
motion by defendant Peat Marwick Main & Co. ("Peat
for partial summary judgment.
2. I have read the accompanying
Effron (ttEffrontl), to which the Court is respectfully
I will not burden the Court with a repetition
background facts, other that confirming the
of the factual presentation made in Effron's
particular, I wish to verify that, following
infusion of $250,000 into Eclipse Laboratories,
.
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7
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DANNENBERG AFF IN FUR OPP
|
EXTRACTED KEY WORDS
COUNTY SUPREME COURT NOMINEES MARWICK MANENTI AMERICA CUTUGNO DULY SWORN DEPOSES OPPOSITION MOTION STALE NSW YORK CONMISSRNN |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
--------------------------------------x
MARTIN EFFRON (individually and
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as
his nominees),
.>,
.,
Plaintiffs,
-against-
PEAT MARWICK MAIN & CO. and STEVEN
MANENTI,
Defendants.
-----w----1*- -------------------------x
STATE OF NEW YORK ) ss. :
COUNTY OF NEW YORK )
JEFFREY C. DANNENBERG, being duly sworn,
says:
1. I am a member of the firm of
Feldman & Sternklar, attorneys for plaintiffs
entitled action, and I am fully familiar with
herein. I respectfully request that the Court accept
additional affidavit in further opposition to
for partial summary judgment.
2. In particular, this affidavit is
the submission of a ttSupplemental Affidavit" by
counsel, sworn to September 23, 1993. That affidavit
accompanying ItReply MemorandumI' were mailed to my
envelope bearing a September 24 postmark and received
office on September 27. Although defendant is
llreply" papers, one item of those submissions
beyond the arguments made in defendant's initial
and, therefore, beyond those issues to which plaintiffs'
opposition papers responded.
3. For the most part, defendant's
nothing to rebut the central point made in the affidavits
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8
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COVERSHEET
|
EXTRACTED KEY WORDS |
46.3004R-lOUM89
COUNTY CLERK, NEW YORK COUNTY
I
Application for INDEX NUMBER pursuant
k:
C.P.L.R.
i<,, fir0
FEE $l4GO-O
Spaces below to be TYPED or PRINTED
pEn'T ~q!.i?.wICK MAIlV &
g'Z'-p;Y~$~ p: XmENTI r
Name and address of SPEC'POR s CHE 2 & ;;`:7
Attorney for Plaintiff 655 `r~~ir(~ ,&tci~y';,e
or Petitioner. jy(?w `York,
Telephone No. (ill21
Name and address of
Attorney for Defendant
or Respondent.
Telephone No.
A. Nature and object of action or
Nature of special proceeding -.,.
-...
--.-~_, - -.,
6. Application for Index Number filed by:
nt Cl
C. Date of Service of Summons +.z/ r;
ons now being filed?
YES@ NO0
D. Is a Provisional Remedy being sought in advance of or simultaneous
with the
Service of this Summons? YES Ll
E. Date Ci-: ITi 1
I"
Checked by
DO NOT WRITE ON LINE
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9
.
COMPLAINT
|
EXTRACTED KEY WORDS
SUPREME COURT COUNTY MARWICK MANENTI RSS GAAP DULY SWORN DEPOSES SHIFRA NOMINEES CONTROLS BASIS DELAWARE REPORT REASONS ECLIPSE DAMAGES JEFFREY DANNENBERG COMPLAINT WIT RLSI SHIFRA MARGARET GRAHAM LBS RISE SHIFRA SHAMANSKY |
rss C:!WPDOCSIJCD/05032-Ol/COMPLAIN
.
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
--------------------------------------x
MARTIN EFFRON (individually and
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as
his nominees),
Plaintiffs,
-against-
PEAT MARWICK MAIN & CO. and STEVEN
MANENTI,
Defendants.
Plaintiffs, by their attorneys, Spector
Feldman, for their complaint herein, allege
1. Plaintiff Martin Effron ("Effron")
individual who, at all relevant times, has resided
County of Nassau, State of New York. At all times
herein, Effron acted either individually or
nominee, First KJM Corp., a New York corporation
and controls.
2. Plaintiff Semyon Kislin (ltKislinl')
individual who, at all relevant times, has resided
County and State of New York. At all times referred
Kislin acted either individually or through
nominees, A.E.C. Trading Co., a New York corporation
owns and controls, or Ludmila Kislin, his
3. Defendant Peat Marwick Main & Co.
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10
.
COMMISION
|
EXTRACTED KEY WORDS
SUPREME COURT COUNTY NOMINEES MARWICK MANENTI |
vg\jcd\05032-Ol\lagdocs\commiss.GF
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
--------------------------------x
MARTIN EFFRON (individually and Index
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as
his nominees),
Plaintiffs,
-against-
PEAT MARWICK MAIN L CO. and STEVEN
MANENTI,
Defendants.
THE PEOPLE OF THE STATE OF NEW YORK
TO: The Appropriate Authority
in the State of Florida
GREETING:
KNOW YE, that we, with full faith in
competency and pursuant to Section 3108 of the
Practice Law and Rules, have appointed you
these presents do authorize you or any of you to
oath to compel Gary Frank, a resident of the
who resides at 540 Woodridge Circle, Ft.
Florida, as a nonparty witness in the action captioned
and pending in our Supreme Court of the State of New York, New
York County, to come before you for the purpose of giving
witness's oral examination before trial to be conducted
the Rules of this Court and Article 31 of the Civil
Law and Rules, and to produce at said examination all
SNIPPETS:
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11
.
ANS AND COUNTER
|
EXTRACTED KEY WORDS
YORK EFFRON COUNTERCLAIM JUDGEMENT SUPREME COURT COUNTY PEAT MARWICK REPORT THEREON LIMITATIONS CPLR RULE FIRST COUNTERCLAIM MARTIN EFFRON CASH MANAGEMENT SECOND COUNTERCLAIM SEMYON KISLIN SPECTOR SCHER FELDMAN ALBERT JURON ESQ STEVEN MANENTI |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
---w---
MARTIN EFFRON, et
-- al., : Index No.
11107/91
Plaintiffs, :
-against- : ANSWER AND COUNTER-
CLAIMS OF DEFENDANT
PEAT MARWICK MAIN & CO., et
-- al., : KPMG PEAT MARWICK
Defendants. :
-------w-w*-------- - x
I
Defendant KPMG Peat Marwick, sued herein as
Marwick Main & Co. ("Peat Marwick"), by its attorneys,
Gordon & Reindel, answers the complaint herein as follows:
1-2. Denies knowledge or information sufficient
form a belief as to the truth of the allegations of
1 and 2 of the complaint.
3. Denies the allegations of paragraph 3 of
complaint and avers that Peat Marwick is a partnership
in the practice of accountancy and that Peat Marwick
offices at 345 Park Avenue, New York, New York.
4. Admits the allegations of paragraph 4 of
complaint.
vr- t
-2-
5-8. Denies knowledge or information
form a belief as to the truth of the allegations of
5 through 8 of the complaint except admits that the
shareholdings were as set forth in paragraph 6 and
Laboratories, Inc. ("Eclipse") was chartered in
SNIPPETS:
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12
.
AMENDED COMPLAINT
|
EXTRACTED KEY WORDS
COUNTY ECLIPSE GAAP SUPREME COURT SEMYON KISLIN BASIS DELAWARE REPORT COMMISSION EXPIRES |
I 4! + .-G--.-r
*.
f
C:/WPDOCS/JCD/05032.OOl~COMPLAIN.am _- 3
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
----------------------------.--"-U.-----.-x
MARTIN EFFRON, FIRST KJM CORP.
and SEMYON KISLIN,
individual who, at all relevan-t times,
herein, Effron acted either i.nd:i..v i
First KJM Corp. ( "First KJM" ) I a Xe;h~ Yo:.k
he
owns, controls and operates ou't of
Park, New York.
2. Plaintiff Semyon K.isl
County and State of New York.
3. Defendant Peat Mar:;~.i.rzk
is a partnership engaged in the b:s
. .
accounting, with its principal place of business
Park Avenue, in the City, county and State of
SNIPPETS:
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13
.
SHAINSWIT STATEMENT 1
|
EXTRACTED KEY WORDS
PEAT MARWICK MANENTI ECLIPSE NY2D SUP DAMAGE CLAIMS PARTIES EFFRON LUDMILA KISLIN |
SUPREME COURT : NEW YORK COUNTY
IAS : PART 10
""----""'------'--------I--------x
MARTIN EFFRON (individually and through
First KJM Corp., as his nominee) and
SEMYON KISLIN (individually and through
A.E.C. Trading Co. and Ludmila Kislin,
as his nominee),
Plaintiffs,
-against- INDEX #
PEAT MARWICK MAIN & CO. and STEVEN
MANENTI,
Defendants.
-----------------------""-----------------------x
Shainswit, J.:
This action arises out of alleged accounting
malpractice and fraud committed by defendant Peat
Main h Co. with respect to its audit of the now bankrupt
Eclipse Laboratories, Inc. Following the completion
discovery and the filing of a note of issue, Peat
has filed the instant motion for partial summary
Specifically, Peat Marwick asks this Court to make the
following legal rulings: (1) neither First KJM
A.E.C. Trading Co., nor Ludmila Kislin may assert
against Peat Marwick; (2) plaintiffs may not assert
for investments made prior to the time they received
Eclipse financial statements; and (3) plaintiffs
recover damages based on the Boca Bank loan guaranties.
The following facts are not in dispute: In or
November 1986, Steven Manenti negotiated the purchase
brand name "EclipseI and existing inventory of
sun care products. This acquisition was
$250,000 investment from plaintiff Martin
$250,000 came from A.E.C. Trading Co., a
corporation that was controlled exclusively
Semyon Kislin. Initially the contributions
a loan. However, in December 1986, $100,000
was reclassified on the financial statements
paid-in-capital.
In April 1987, Eclipse decided to retain
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14
.
REP MEM SUP MTSJ
|
EXTRACTED KEY WORDS
COUNTY SUPREME COURT PEAT MARWICK ASSERT CLAIMS CONTINGENT FUTURE EVENTS TRADING KISLIN ECLIPSE PRIOR LOST MONEY OPENING MEM DISPUTE ALLEGEDLY DEFICIENT AUDIT DEFICIENT AUDIT REPORT AMOUNTS NOMINEES STEVEN MANENTI SPECTOR SCHER FELDMAN STERNKLAR |
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
--------------m----x
MARTIN EFFRON, et al., Index No. 11107/91
Plaintiffs, : IAS Part 10
-against-
PEAT MARWICK MAIN & CO., et al., : HONORABLE BEATRICE SHAINSWIT
Defendants. :
-------------------x
REPLY MEMORANDUM IN SUPPORT
OF DEFENDANT'S MOTION FOR
PARTIAL SUMMARY JUDGMENT
WILLKIE FARR &
One Citicorp Center
153 East 53rd Street
New York, New York
(212) 935-8000
Of Counsel, Attorneys for
Michael R. Young KPMG Peat Marwick
TABLE OF CONTENTS
PRELIMINARY STATEMENT . . . . . . . . a . . . . . . b . . . .
I. UNDER CREDIT ALLIANCE, NEITHER FIRST KJM
CORP, A.E.C. TRADING CO., NOR MRS. KISLIN
MAY ASSERT CLAIMS AGAINST PEAT MARWICK . . . . . .
II. ONLY THE AUTHORIZED BANKRUPTCY TRUSTEE MAY
ASSERT CLAIMS ON BEHALF OF A.E.C. TRADING CO . . e
III. PLAINT-IFFS MAY NOT RECOVER MONEY THEY
INVESTED IN ECLIPSE PRIOR TO THE RELEASE
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15
.
EFFRON AFF OPP MOT
|
EXTRACTED KEY WORDS
COUNTY MANENTI DANNENBERG INVENTORIES PEAT MARWICK BASIS THEREWITH SWORN COMMISSION EXPIRES JUDGEMENT KESH STOCKHOLDERS ASAETS COAT AALES EXPENSES SATE PAYABLE-RANK AINTAIN MINIMUM TANGIBLE NET TANGIBLE NET WORTH CREDIT DEBT EQUIPMENT AMOUNT BEARING SALARY PAYMENTS ACQUISITION EXHIBIT DIRECTORS |
0 a + l
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
.a
MARTIN EFFRON (individually and
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as
his nominees),
Plaintiffs,
-against-
PEAT MARWICK MAIN & CO. and STEVEN
MANENTI,
Defendants.
-'--"-"'-"---"--------------------x
STATE OF NEW YORK ; ss.:
COUNTY OF NEW YORK )
MARTIN EFFRON, being duly sworn,,,deposes
1. I am one of the two plaintiffs
entitled action, and I am fully familiar
forth herein. I make this affidavit in
motion by defendant Peat Marwick Main & Co.
for partial summary judgment.'
2. This action was commenced in May 1991.
forth more fully in the Complaint (a copy
to the moving affidavit of Peat Marwick's
A) 1 this is an accountant's malpractice
1 Originally, there was a second defendant
action, Steven Manenti. However, the action
as against him following his filing a
bankruptcy.
l l c
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16
.
AFF SUP APPL FOR COMMISIO
|
EXTRACTED KEY WORDS
COUNTY SUPREME COURT PEAT MARWICK MANENTI ECLIPSE DEPOSITION COMMISSION GDBDL BUALLFLECM BRUNX |
c:IwPDoCS/JCD/050*32-DllaffidalSupport.aff .
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
-------------------------------l---x
MARTIN EFFRON (individually and
through First KJM Corp., as his
nominee) and SEMYON KISLIN
(individually and through A.E.C.
Trading Co. and Ludmila Kislin, as
his nominees),
Plaintiffs,
-against-
PEAT MARWICK MAIN & CO. and STEVEN
MANENTI,
Defendants.
--------------------------------------x
STATE OF NEW YORK ; ss.:
COUNTY OF NEW YORK )
JEFFREY C. DANNENBERG, being duly sworn,
says:
1. I am a member of the firm Spector,
Feldman & Sternklar, attorneys for plaintiffs
entitled action, and I am fully familiar
forth herein. I submit this affidavit in
plaintiffs' application for the issuance of
allow my office to take an oral deposition
witness in the State of Florida. A copy of a
Commission to this effect is annexed hereto
2. This action was commenced by service
summons and complaint in May 1991. In
contains several causes of action against
defendant Peat Marwick Main & Co. ("Peat Marwick"),
that firm's preparation of audited financial
corporation know as Eclipse Laboratories, Inc.
the year ending March 31, 1988.l (Peat Marwick's
of those audited financial statements is hereinafter
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