BELOIT CORPORATION V EMMETT & CHANDLER COMPANIES INC AND OTHERS

(1991) 1 Re LR 146

United States Court of Appeals Ninth Circuit

Before Circuit Judge Boochever, Circuit Judge Kozinski and Circuit Judge O’Scannlain

Acquisition - Reinsurance company - IBNR reserves - Alleged misrepresentation, non-disclosure and breach of California state security laws by vendor of reinsurance company, vendor’s president and auditors - Purchaser of reinsurance company informed that IBNR reserves were “adequate” - Reports that IBNR were $1 million to $3 million inadequate - Statement by vendor’s auditor “off the record” that IBNR reserves were understated $2 million - Non-disclosure of IBNR computer programme - Whether summary judgment in favour of vendor, vendor’s president and auditors should be affirmed.