Feb 29, 2016

Livent case opens door to auditor liability

The Ontario Court of Appeal’s move to uphold a ruling ordering Deloitte & Touche to pay Livent’s creditors represents a significant step forward in the expansion of auditor liability, Toronto corporate and commercial lawyer Dan Rothberg tells Lawyers Weekly.

In Livent Inc. v. Deloitte & Touche, 2016 ONCA 11, the appeal court unanimously ruled that a 2014 decision by Ontario Superior Court Justice Arthur Gans ordering Deloitte to pay the defunct theatre entertainment company's creditors more than $118 million in damages and interest was correct in law, Lawyers Weekly reports.

“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,” wrote Justice Robert Blair.

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Photo by Simon Cunningham