Caparo Industries plc v Dickman and others
Caparo Industries plc v Dickman and others
- 1990
- Construction Industry Law Letter 1990 CILL 560-564(5) .
HL 8 February 1990. Caparo (C) bought a company on the basis of its audit by accountants Touche Ross . When the purchased company brought C economic loss, C alleged that the accountants owed a duty of care to investors and potential investors in respect of the audit. The initial finding was that Touche Ross owed no duty to C and no common law duty to individual shareholders for economic loss. CA allowed C`s appeal but qualified it by saying Touche Ross did not owe a duty of care to potential investors. Touche Ross appealed and C cross appealed against the decision that potential investors were not owed a duty of care. Touche Ross won its appeal and C`s was dismissed.
HL 8 February 1990. Caparo (C) bought a company on the basis of its audit by accountants Touche Ross . When the purchased company brought C economic loss, C alleged that the accountants owed a duty of care to investors and potential investors in respect of the audit. The initial finding was that Touche Ross owed no duty to C and no common law duty to individual shareholders for economic loss. CA allowed C`s appeal but qualified it by saying Touche Ross did not owe a duty of care to potential investors. Touche Ross appealed and C cross appealed against the decision that potential investors were not owed a duty of care. Touche Ross won its appeal and C`s was dismissed.