Arrowhead Capital Finance Ltd v KPMG LLP

Arrowhead Capital Finance Ltd v KPMG LLP

KPMG owed no duty of care to Arrowhead, as there was no assumption of responsibility and it would not be fair, just, or reasonable to impose such a duty given contractual limitations and the business context. Even if a duty existed, Arrowhead's claim was time barred, as actual measurable damage occurred by November 2004, more than six years before the claim was issued.

Parties
Claimant: Arrowhead Capital Finance Limited (in Liquidation); Defendant: KPMG LLP
Jurisdiction
England and Wales
Judgment Date
02 July 2012
Procedural Posture
Commercial Court Application / Summary Judgment/strike Out Application
Outcome
Claim dismissed
Legal Topics
Duty of Care, Assumption of Responsibility, Limitation Period, Negligence, Third Party Liability
Tort Professional Negligence Limitation Duty of Care Assumption of Responsibility Limitation Period Negligence Third Party Liability

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Parties

Arrowhead Capital Finance Limited (in Liquidation)

Claimant

KPMG LLP

Defendant

Procedural Posture

Commercial Court Application / Summary Judgment/strike Out Application

Legal Issues

  1. 1 Whether KPMG owed a duty of care to Arrowhead as a non-client investor
  2. 2 Whether the claim is time barred under the Limitation Act 1980

Ratio Decidendi

KPMG owed no duty of care to Arrowhead, as there was no assumption of responsibility and it would not be fair, just, or reasonable to impose such a duty given contractual limitations and the business context. Even if a duty existed, Arrowhead's claim was time barred, as actual measurable damage occurred by November 2004, more than six years before the claim was issued.

Court Disposition

Claim dismissed

Orders

  • Summary judgment granted in favour of KPMG
  • Arrowhead's claim struck out