Under an insurance fidelity bond, National Union paid $18 million in losses sustained by its insured, Bank Atlantic. National Union then sued Bank Atlantic's accounting firm, KPMG Peat Marwick, alleging that the loss was a result of accounting malpractice. The trial judge dismissed the case on grounds that a claim for accounting malpractice cannot be raised by a third party due to the confidential nature of accountant-client communications. The Third District Court reversed and certified the issue to the Supreme Court.