Feb 29, 2016

Livent appeal decision changes auditor duties, experts say

The Court of Appeal of Ontario has upheld a landmark ruling affecting auditors across Canada. Unanimously, the court said that a decision in 2014 by Ontario Superior Court Justice Arthur Gans ordering Deloitte & Touche to pay creditors of defunct theatre entertainment company Livent Inc. more than $118 million in damages, including interest, was correct in law. “In my view, the record amply supports the trial judge’s findings that Deloitte was negligent in its conduct of the 1997 audit and the Q2 and Q3 1997 engagement,” Justice Robert Blair said writing for a panel of three judges in Livent (Special Receiver and Manager of ) v. Deloitte & Touche [2016] ONCA 11. “Indeed, the evidence to that effect is overwhelming.” Whether this case is appealed all the way to the Supreme Court of Canada has yet to be determined. 

Download the full article on The Lawyers Weekly here

Photo by Peter Molnar