Negligent Accountants Must Pay £15 Million Damages

A company which lost over £16 million in providing financial support to a young and apparently promising business that turned out disastrously has been awarded most of its money back from negligent accountants who advised on the deal.

The company specialised in making relatively high-risk loans to nascent ventures at higher than usual rates of interest and had put millions into the business in reliance on a positive due diligence report from the accountants. The venture never enjoyed any great success and most of its assets in the event proved worthless.

The accountants conceded that their negligence had caused the company loss but hotly disputed the value of its claim. The High Court found the accountants liable to pay £15 million damages – that being the contractual cap on their liability – plus interest.

Contact: Alan Porter