Barclays Trust Company (Jersey) Ltd v Ernst & Young LLP

Barclays Trust Company (Jersey) Ltd v Ernst & Young LLP

EY did not act in breach of duty or negligently in any respect. Even if there had been a breach, the claimants would have proceeded with the transaction and suffered no loss, as Esporta was not overvalued at the time of purchase.

Parties
Claimant: Barclays Trust Company (Jersey) Limited; Claimant: Bell Leisure Group Limited; Claimant: Bell Leisure Holdings Limited; Claimant: Bell Leisure Investments Limited; Claimant: Bell Leisure Holdings (UK) Limited; Claimant: Bell Leisure Investments (UK) Limited; Claimant: Bell Acquisitions (UK) Limited; Defendant: Ernst & Young LLP
Jurisdiction
England and Wales
Judgment Date
20 April 2016
Procedural Posture
Civil Professional Negligence / Judgment After Full Trial
Outcome
Claim dismissed
Legal Topics
Accountants' Liability, Due Diligence, Damages, Causation, Valuation of Businesses
Professional Negligence Commercial Law Accountants' Liability Due Diligence Damages Causation Valuation of Businesses

Case Brief

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Parties

Barclays Trust Company (Jersey) Limited

Claimant

Bell Leisure Group Limited

Claimant

Bell Leisure Holdings Limited

Claimant

Bell Leisure Investments Limited

Claimant

Bell Leisure Holdings (UK) Limited

Claimant

Bell Leisure Investments (UK) Limited

Claimant

Bell Acquisitions (UK) Limited

Claimant

Ernst & Young LLP

Defendant

Procedural Posture

Civil Professional Negligence / Judgment After Full Trial

Legal Issues

  1. 1 Whether EY breached its duty of care in providing due diligence services to the claimants regarding the acquisition of Esporta
  2. 2 Whether any alleged breach caused loss to the claimants
  3. 3 Proper measure of damages if liability established

Ratio Decidendi

EY did not act in breach of duty or negligently in any respect. Even if there had been a breach, the claimants would have proceeded with the transaction and suffered no loss, as Esporta was not overvalued at the time of purchase.

Court Disposition

Claim dismissed