Diversified Graphics v. Groves

Citation: Diversified Graphics, Ltd. v. Groves, 868 F.2d 293 (8th Cir. 1989).

Factual Background
The plaintiff hired a large accounting firm to help it locate a turnkey computer system. When the chosen system proved inadequate for the company’s needs, the company sued.

District Court Decision
The court ruled that the accounting firm should be held to the American Institute of Certified Public Accountants’ Management Advisory Service Practice Standards, which the firm had voluntary adopted for internal use. While the court refused to acknowledge a cause of action for computer malpractice, by holding the accounting firm to those higher AICPA standards, it achieved essentially the same result.