There is extensive discussion of the ex turpi causa/illegality defence, particularly as it relates to issues of corporate identification (whether acts of individuals get attributed to the corporation). Some of the leading UK decisions are discussed, though relatively briefly.
The longest part of the decision deals with an auditor's standard of care. A snippet (at para. 301): "Additional red flags emerged during the following years. These red flags should have heightened Deloitte’s awareness of the need to apply an objective attitude of professional skepticism, but apparently did not. By August/September 1997, the red flags were fully “aflutter”".
The decision also has significant sections on factual causation, remoteness and the quantum of damages.
In the end the appeal and the cross-appeal are dismissed, so the trial judge's decision is upheld. That decision found the defendant auditors liable and awarded Livent damages of $84,750,000 plus interest (totalling $118,035,770).
Stephen
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Professor Stephen G.A. Pitel
Faculty of Law, Western University
(519) 661-2111 ext 88433
Professor Stephen G.A. Pitel
Faculty of Law, Western University
(519) 661-2111 ext 88433