Maguwada and Others v KPMG Services (Pty) Limited SA (22014/2019)
Maguwada and Others v KPMG Services (Pty) Limited SA (22014/2019) [2021] ZAGPPHC 267 (6 May 2021)
The court held that the plaintiffs' claim is for pure economic loss arising from an alleged negligent misstatement by KPMG in the audit of VBS Mutual Bank. South African law does not recognize a general duty of care owed by auditors to employees of the audited company for such losses. The court found that imposing liability on auditors in these circumstances would create indeterminate liability, contrary to public and legal policy. The particulars of claim failed to establish wrongfulness or a legal duty owed by KPMG to the plaintiffs, and the damages claimed were not sufficiently particulari…
Source excerpt
- Pure Economic Loss
- Wrongfulness
- Auditor Liability
- Exception Procedure
- Negligent Misstatement
- Constitutional Rights Claim