Moss, R (on the application of) v KPMG Llp

Moss, R (on the application of) v KPMG Llp

The auditor was wrong not to conclude that a significant but unquantifiable proportion of PCN income was unlawful, but was entitled to exercise discretion not to seek a declaration given remedial action, inability to specify the unlawful amount, and the availability of other remedies. There was no value in making a declaration. The appeal is dismissed and costs follow the event.

Parties
Appellant: Barry Moss; Respondent: KPMG LLP
Jurisdiction
England and Wales
Judgment Date
14 October 2010
Procedural Posture
Statutory Appeal (audit Commission Act 1998, S.17) / High Court Judgment and Costs Determination
Outcome
Appeal dismissed
Legal Topics
Parking Enforcement, Unlawful Income in Local Authority Accounts, Exercise of Auditor's Discretion, Statutory Appeals, Costs Orders
Administrative Law Local Government Law Public Audit Parking Enforcement Unlawful Income in Local Authority Accounts Exercise of Auditor's Discretion Statutory Appeals Costs Orders

Case Brief

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Parties

Barry Moss

Appellant

KPMG LLP

Respondent

Procedural Posture

Statutory Appeal (audit Commission Act 1998, S.17) / High Court Judgment and Costs Determination

Legal Issues

  1. 1 Whether the auditor erred in law or discretion by refusing to apply for a declaration that PCN income was unlawful
  2. 2 Whether a declaration should be made that the item of account was unlawful
  3. 3 Appropriate approach to appeals under s.17 Audit Commission Act 1998

Ratio Decidendi

The auditor was wrong not to conclude that a significant but unquantifiable proportion of PCN income was unlawful, but was entitled to exercise discretion not to seek a declaration given remedial action, inability to specify the unlawful amount, and the availability of other remedies. There was no value in making a declaration. The appeal is dismissed and costs follow the event.

Court Disposition

Appeal dismissed

Orders

  • No declaration that the item of account is unlawful
  • Appellant to pay respondent's costs, summarily assessed at £40,000