New York court declines jurisdiction over Virginia accountant.The U.S. District Court for the Southern District of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of declined to exercise jurisdiction over a case brought by the New York office of a foreign bank against a Virginia-based accounting firm.
The United Bank of Kuwait Kuwait (kwīt`, –wāt) or Kowait (kō`–), officially State of Kuwait, independent sheikhdom (2005 est. pop. , PLC, sued the accounting firm James M. Bridges, Ltd., after one of Bridges's audit clients--Southern Atlantic Mortgage, Inc.--defaulted on a loan issued to it by the bank. The bank sought to have the case tried in the Supreme Court for the State of New York, County of New York. Bridges moved to have the case dismissed from the New York court, claiming it lacked personal jurisdiction over him.
In ruling in Bridges's favor, the court held when a client does not inform an accountant of an audit's purpose in the engagement letter, there is no reasonable basis for the accountant to expect to be summoned into a foreign jurisdiction.
To rule that Bridges knew or should have known that audit errors would have consequences to the Bank of Kuwait simply because the bank was a creditor An individual to whom an obligation is owed because he or she has given something of value in exchange. One who may legally demand and receive money, either through the fulfillment of a contract or due to injury sustained as a result of another's Negligence of Bridges's client would render accountants subject to jurisdiction wherever creditors of a client are located. This, the court found, is manifestly man·i·fest
Clearly apparent to the sight or understanding; obvious. See Synonyms at apparent.
tr.v. man·i·fest·ed, man·i·fest·ing, man·i·fests
1. unreasonable. (United Bank of Kuwait v. James M. Bridges, Ltd., 776 F. Supp. 112)
Edited by Wayne J. Baliga, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , JD, vice-president, AON Corp.