In its much anticipated decision in Deloitte & Touche v. Livent Inc. (Receiver of), the Supreme Court of Canada has considerably reduced the damage award payable by an auditor after it failed to detect a colossal fraud perpetrated by the directors of Livent. While the amount of the award remains significant at $40,425,000, this is less than half of the $84,750,000 initially awarded by the lower courts. In reaching this result, the Court provided clearer guidance on when an auditor may be liable to its corporate client in cases of negligent misrepresentation or performance of a service. Significantly, where … Continue Reading
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This blog expresses our views on upcoming and decided appeals of interest to Canadian businesses and professions. It also comments on the impact of legal changes that may affect appellate procedure, and relates insights and best practices derived from our experiences handling complex appeals.