Buckley v. Deloitte &Touche U.S.A. L.L.P. et al
Filing
97
OPINION: The viability of this tort and contract action turns on Buckley's evidence of causation. The Court grants Deloitte's motion to exclude the expert report of Michael J. Epstein because it lacks factual foundation and reliable methodo logy. Without that evidence, Buckley must rely upon scraps of deposition testimony and declarations to demonstrate that DVI's board would have undertaken a massive and successful corporate reorganization. The evidence, however, cannot support that conclusion. Accordingly, the Court grants summary judgment in Deloitte's favor. (Signed by Judge Sidney H. Stein on 8/16/2012) (tro)
USDCSDNY
DOCUMENT
ELEcrRONICAlLY FILEr
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
----------------------------------- x
It DOC #:
.
~ ~~ATE FILED: E::"~':...... :
............ t._"...
.
.\. :
.~
DENNIS JBUCKLEY, AS TRUSTEE OF THE
DVI LIQUIDATING TRUST,
06 Civ. 3291 (SHS)
Plaintiff,
OPINION
-againstDELOITTE & TOUCHE USA LLP and
DELOITTE & TOUCHE LLP,
Defendants.
x
SIDNEY H. STEIN, U.S. District Judge.
This tort and contract action arises out of the auditing work done by
Deloitte & Touche USA LLP and Deloitte & Touche LLP (collectively,
"Deloitte") on behalf of DVI, Inc, a defunct health care finance company.
Dennis J. Buckley, DVI's bankruptcy trustee, asserts that Deloitte's conduct
caused DVI's collapse. Deloitte has now moved for summary judgment in its
favor and has also moved to exclude the expert report of Michael J. Epstein.
The Court excludes that report because it lacks the factual foundation and
reliable methodology that make opinion testimony useful to a jury. Further,
because Buckley has failed to come forward with any admissible evidence
upon which a jury could find that Deloitte caused DVI's injuries, the Court
grants summary judgment in Deloitte's favor.
I.
Background
A. The parties
DVI was a specialty finance company that primarily served healthcare
providers. (Pl.'s Additional 56.1 '14; Defs.' Response 56.1 '14.)1 As of June 30,
2002, DVl's management consisted of one president and seven vice
1 Deloitte has filed a Local Civil Rule 56.1 Statement of Undisputed Facts ("Defs: 56.1").
Buckley has filed a responsive Local Civil Rule 56.1 Statement of Undisputed Facts ("PI:s
56.1"), as well as a Statement of Additional Material Facts ("Pl:s Additional 56.1"). Deloitte has
filed a Response to Plaintiff's Statement of Additional Material Facts ("Defs: Response 56.1").
-,~
presidents. Michael A. O'Hanlon served as CEO and Chairman of DVI and
Steven R. Garfinkel served as Executive Vice President and Chief Financial
Officer. (2002 DVI Form 10-K at 15, Ex. 32 to Pl.'s 56.1.) O'Hanlon, Gerald L.
Cohn, William S. Goldberg, John E. McHugh, Harry T.J. Roberts, and Nathan
Shapiro all served as directors during the 1999-2003 period. (See Exs. 29-31 to
Pl.'s 56.1.)
Deloitte served as DVI's independent auditor. (Deloitte Engagement
Letters, Exs. 60-63 to Defs.' 56.1.) It audited and signed-off on DVI's financial
statements for the years ending June 30, 1999 through June 30,2002. (1999
2002 DVI Forms 10-K, Exs. 1-4 to Defs.' 56.1.) Deloitte did not sign-off on any
audit of DVI's financials following the June 30, 2002 Form 10-K. (See Pl.'s 56.1
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?