This section contains the nature of the case and procedural background.

P, a clothing manufacturer, established an account for and began extending credit to Myers Department Stores, Inc. In 1980, Myers and an affiliated company, Myers Department Stores of Fort Worth, Inc., were acquired by a newly-formed Delaware corporation, Myers Department Stores, Inc. Shortly after the acquisition, D was engaged by Myers to audit the financial records of Myers and its subsidiary corporations as of and for the fiscal year ended February 1, 1981. On June 3, 1981, D forwarded to Myers the consolidated balance sheet, the combined financial statements, and accountants' reports on both statements. Several days later, D made a minor revision in the combined financial statements and, at Myers' request, provided seventy copies of the revised statements to replace the twenty-five copies of the original statements. Myers furnished the original and revised combined financial statements, and the accompanying accountants' report, to P. Blue Bell allegedly relied upon these documents in extending substantial amounts of credit to Myers' Texas operation. On November 4, 1982, Myers filed for bankruptcy. P recovered only a portion of the balance due on its account with Myers in Texas. P filed suit against D. D moved for summary judgment as to negligent misrepresentation cause of action on the ground that the summary judgment evidence conclusively established the absence of the following elements of the cause of action: (1) that D owed a legal duty to P; (2) that P was a member of a limited group of persons D intended to, or knew that Myers intended to, supply with information prepared by D, and that P relied on that information in a transaction which D intended or knew that Myers intended, the information to influence; (3) that D provided false information; (4) that D failed to exercise reasonable care; and (5) that P's reliance was justified. P asserted that the summary judgment evidence conclusively established that P had been contributorily negligent and that P's negligence was the sole proximate cause of its damages. The court granted D summary judgment, and P appealed.

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