331 S.W.3d 648
Mo.2011Background
- CWF sued Mayer Hoffman and CBIZ for professional negligence over an audit and tax preparation relating to gifts-in-kind contributions.
- Mayer Hoffman audited CWF and produced financial statements; CBIZ prepared CWF's 1999 tax return based on those statements.
- CWF provided an inventory spreadsheet; Mayer Hoffman relied on it but used starting quantities ordered, not received, causing overstatement of gifts-in-kind value by about $1.31 million.
- Waybills existed but were not provided to Mayer Hoffman; testimony suggested counts likely matched shipments, not the counts used in the spreadsheet.
- Trial court gave a contributory negligence instruction (Instruction No. 11) over CWF’s objection; jury favored defendants.
- Missouri Supreme Court, en banc, reversed, holding comparative fault applies in professional negligence with economic loss and instructional error was prejudicial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether comparative fault applies to professional negligence with economic loss. | CWF—Gustafson abrogates contributory negligence; comparative fault should apply. | Mayer Hoffman/CBIZ—no comparable fault due to contract and economic-loss context. | Yes, comparative fault applies. |
| Whether submitting contributory negligence instruction was prejudicial error. | Instruction misdirected; prejudiced the verdict. | (not stated in opinion excerpt) | Instruction error prejudicial; reversible error. |
Key Cases Cited
- Gustafson v. Benda, 661 S.W.2d 11 (Mo. banc 1983) (abrogated contributory negligence in favor of comparative fault in negligence actions)
- Lippard v. Houdaille Industries, 715 S.W.2d 491 (Mo. banc 1986) (UCFA informs comparative fault application)
- Chicago Title Ins. Co. v. Mertens, 878 S.W.2d 899 (Mo. App. 1994) (rejected relying solely on economic damages to bar comparative fault)
- Miller v. Ernst & Young, 892 S.W.2d 387 (Mo. App. 1995) (contributory negligence not applicable in some economic-loss cases)
- Murphy v. City of Springfield, 738 S.W.2d 521 (Mo. App. 1988) (economic-loss negligence and comparative fault discussion)