§ 37:91 — Privity of contract

Louisiana § 37:91

• Jurisdiction: Louisiana
• Title 37: Professions and Occupations

Text

§91. Privity of contract
A. This Section shall apply to all causes of action specified in this Section filed on
or after June 18, 1999.
B. No action based on negligence may be brought against any defendant licensee, or
any employee or principal of a defendant licensee, unless the plaintiff claims to have been
injured as a result of their justifiable reliance upon financial statements or other information
examined, compiled, reviewed, certified, audited, prepared pursuant to a preparation of
financial statement engagement, or otherwise prepared, reported, or opined on by the
defendant licensee or in the course of the defendant licensee's engagement to provide other
services and at least one of the following conditions apply:
(1) The plaintiff is the issuer or successor of the issuer of the financial statements or
other information examined, compiled, reviewed, certified, audited, prepared pursuant to a
preparation of financial statement engagement, or otherwise prepared, reported, or opined
on by the defendant licensee, and such plaintiff has engaged the defendant licensee to
examine, compile, review, certify, audit, prepare pursuant to a preparation of financial
statement engagement, or otherwise report or render an opinion on such financial statements
or to provide other services.
(2) The defendant licensee was aware at the time the engagement was undertaken
that the financial statements or other information were to be made available for use in
connection with a specified transaction by the plaintiff who was specifically identified to the
defendant licensee, was aware that the plaintiff intended to rely upon such financial
statements or other information in connection with the specified transaction, and had direct
contact and communication with the plaintiff and expressed by words and conduct the
defendant licensee's understanding of the reliance on such financial statements or other
information.

Legislative History

Acts 1992, No. 611, §2; Acts 1999, No. 473, §1, eff. June 18, 1999; Acts 2016, No. 553, §1.