It was complained that the auditors had failed timeously to warn the company of fraud by a senior employee. The appeal concerned an application to strike out heads of claim in an action brought by the company against its auditors for negligence.
Held: Appeal allowed. It was submitted that the auditors’ duty did not extend to the losses claimed because the transactions from which they flowed arose in the normal course of business and were part of the ordinary risks associated with the carrying on of that business. That submission failed. The case was arguable and should be allowed to continue.
[2001] EWHC Ch 423
Bailii
England and Wales
Citing:
Appeal from – Sasea Finance Ltd (In Liquidation) v KPMG (A Firm) ChD 25-Aug-1998
Where an auditor had negligently failed to identify the insolvency of a company and to warn against payment of dividends, the auditor was liable in damages for dividends wrongly paid. . .
Cited by:
Appealed to – Sasea Finance Ltd (In Liquidation) v KPMG (A Firm) ChD 25-Aug-1998
Where an auditor had negligently failed to identify the insolvency of a company and to warn against payment of dividends, the auditor was liable in damages for dividends wrongly paid. . .
Cited – Equitable Life Assurance Society v Ernst and Young CA 25-Jul-2003
The claimant sought damages from its accountants, saying that had they been advised of the difficulties in their financial situation, they would have been able to avoid the loss of some 2.5 billion pounds, or to sell their assets at a time when . .
Lists of cited by and citing cases may be incomplete.
Professional Negligence
Updated: 23 December 2021; Ref: scu.163016
