Supreme Court Affirms Defense Judgment in Favor of Guthrie & Thomas Client

Posted: Monday, November 21, 2011

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     On November 16, 2011, the West Virginia Supreme Court of Appeals affirmed the Circuit Court of McDowell County’s order granting summary judgment in favor of Guthrie & Thomas client Kutak Rock LLP on a claim brought by accounting firm Grant Thornton LLP seeking over $40 million.  [Link to opinion] Grant Thornton’s claims against Kutak Rock, a Nebraska law firm, were based on alleged acts and omissions related to Grant Thornton’s failed audit of the First National Bank of Keystone, a McDowell County bank that failed in 1999. Kutak Rock had settled any claims the FDIC, as receiver of the Bank, may have had against the firm for legal services provided to the Bank.  Grant Thornton sought to recover from Kutak the value of the verdict the FDIC obtained against it in the United States District Court, plus legal fees and expenses incurred in the litigation.  Grant Thornton argued that its claims were “direct” as opposed to claims for contribution.  The West Virginia Supreme Court affirmed the Circuit Court’s finding that these “claims” were actually contribution claims barred by the good faith settlement between Kutak Rock and the FDIC.  David Thomas, Stephanie Thacker, Scott Wickline and Debra Price represented Kutak Rock.