Carillion Plc v KPMG LLP & Anor

Carillion Plc v KPMG LLP & Anor

The application for pre-action disclosure was refused because Carillion could plead its case without the documents sought, the request was too broad and not limited to key documents, there was no breach by KPMG of the Protocol, and the case did not fall outside the usual run to justify pre-action disclosure. The court found that the usual course of pleading and disclosure within proceedings should be followed, and that granting the application would lead to unnecessary cost, duplication, and potential serial applications.

Parties
Claimant: Carillion PLC (In Liquidation); Defendant: KPMG LLP; Defendant: KPMG Audit PLC
Jurisdiction
England and Wales
Judgment Date
03 June 2020
Procedural Posture
Commercial Court Application / Pre Action Disclosure Application
Outcome
Application dismissed
Legal Topics
Pre Action Disclosure, Audit Negligence, Compliance With Pre Action Protocols
Civil Procedure Professional Negligence Pre Action Disclosure Audit Negligence Compliance With Pre Action Protocols

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Parties

Carillion PLC (In Liquidation)

Claimant

KPMG LLP

Defendant

KPMG Audit PLC

Defendant

Procedural Posture

Commercial Court Application / Pre Action Disclosure Application

Legal Issues

  1. 1 Whether the court should order pre-action disclosure under CPR 31.16 against KPMG in relation to audit working papers for Carillion's 2014-2016 audits and goodwill assessments.
  2. 2 Whether Carillion complied with the Pre-Action Protocol for Professional Negligence.
  3. 3 Whether the documents sought fall within standard disclosure and are necessary for fair disposal or cost-saving.

Ratio Decidendi

The application for pre-action disclosure was refused because Carillion could plead its case without the documents sought, the request was too broad and not limited to key documents, there was no breach by KPMG of the Protocol, and the case did not fall outside the usual run to justify pre-action disclosure. The court found that the usual course of pleading and disclosure within proceedings should be followed, and that granting the application would lead to unnecessary cost, duplication, and potential serial applications.

Court Disposition

Application dismissed