The liquidator of former construction giant Carillion, which spectacularly collapsed in 2018, has failed to persuade the court to order KPMG to disclose its audit working papers. After Carillion went into liquidation with reported debts of £1.5 trillion, questions…read more
Court rules accountant had no duty of care to shareholder. Published November 2020
A property-owner has failed in her bid to have the demerger of the family business overturned after she accused the company’s accountant of breach of fiduciary duty and professional negligence. Six years later Carmela brought an action to have the…read more
Accounting giant loses appeal against record audit damages. Published October 2020
Grant Thornton has failed in its bid to overturn record £22 million damages after it was found liable for negligence in its audit of fire equipment leasing company AssetCo. Judges threw out the accounting giant’s appeal, but reduced the damages…read more
Deliberate concealment restarts the clock on limitation defence. Published November 2020
Deliberately hiding incriminating facts can overturn the original position on a limitation defence. If the defendant deliberately hides relevant facts, the limitation clock only starts once the concealment is revealed the courts have confirmed. In 2015, RG Securities bought a…read more
High Court rules on FCA business interruption insurance test case. Published October 2020
The High Court has arguably ruled in favour of the Financial Conduct Authority (FCA) in its recent test case to clarify whether some businesses shut down by the Covid-19 pandemic can claim on their Business Interruption (BI) insurance. The Court…read more
Insurers must be allowed to cancel PII policies for non-payment says IUA. Published November 2020
The International Underwriting Association (IUA) has warned the legal profession that professional indemnity insurance may become unsustainable if insurers are not allowed to cancel policies for the non-payment of premiums. In an unprecedented open letter to the profession, the IUA…read more
SRA perseveres with controversial cuts to the Compensation Fund. Published October 2020
Controversial cuts to the Solicitors Regulation Authority (SRA) Compensation Fund have been maintained by the regulator. It wants to limit pay-outs from the fund to £500,000 – down from the current £2 million limit. The SRA’s plans will now go…read more
