BTI 2014 LLC v Pricewaterhousecoopers LLP & Anor

BTI 2014 LLC v Pricewaterhousecoopers LLP & Anor

The claim by BTI against PwC is not an abuse of process because it raises new issues, including the audit of the 2007 accounts, and may involve new evidence; it is not a collateral attack on the prior judgment. There is a real prospect of new material evidence being adduced. The scope of PwC's duty and the assessment of loss are fact-sensitive and cannot be determined summarily. The application to strike out or for summary judgment is dismissed.

Parties
Claimant: BTI 2014 LLC; First Defendant: PricewaterhouseCoopers LLP; Second Defendant (nominal): Windward Prospects Limited
Jurisdiction
England and Wales
Judgment Date
15 November 2019
Procedural Posture
Civil Professional Negligence / Ruling on Application to Strike Out Claim And/or for Summary Judgment
Outcome
Application to strike out and for summary judgment dismissed
Legal Topics
Auditor's Duty of Care, Unlawful Dividends, Collateral Attack/abuse of Process, Causation and Loss in Negligence, Scope of Duty (saamco), Assessment of Damages
Professional Negligence Company Law Audit Law Auditor's Duty of Care Unlawful Dividends Collateral Attack/abuse of Process Causation and Loss in Negligence Scope of Duty (saamco) +1 more

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Parties

BTI 2014 LLC

Claimant

PricewaterhouseCoopers LLP

First Defendant

Windward Prospects Limited

Second Defendant (nominal)

Procedural Posture

Civil Professional Negligence / Ruling on Application to Strike Out Claim And/or for Summary Judgment

Legal Issues

  1. 1 Whether the claim against PwC is an abuse of process as a collateral attack on a prior judgment
  2. 2 Whether there is any real prospect of new material evidence justifying a different outcome
  3. 3 Whether the losses claimed fall within the scope of PwC's duty of care

Ratio Decidendi

The claim by BTI against PwC is not an abuse of process because it raises new issues, including the audit of the 2007 accounts, and may involve new evidence; it is not a collateral attack on the prior judgment. There is a real prospect of new material evidence being adduced. The scope of PwC's duty and the assessment of loss are fact-sensitive and cannot be determined summarily. The application to strike out or for summary judgment is dismissed.

Court Disposition

Application to strike out and for summary judgment dismissed

Orders

  • Claim proceeds to trial
  • PwC to plead its defence including on causation and quantum