|
2280 REVIEW DENIED A shareholder in a corporation that hires an auditor is not the auditor's client and, in the absence of facts making the shareholder an express third party beneficiary of the agreement between corporation and auditor, is not owed a duty by the auditor to avoid general negligence; even if an auditor owed a plaintiff a duty to avoid negligent or intentional misrepresentation, the plaintiff is not entitled to recover damages from the auditor unless the misrepresentation induced the plaintiff to rely to his/her detriment on the audit; a plaintiff who was already obligated as a guarantor before the auditor issued the audit has not detrimentally relied on the audit.
MARIANI v PRICE WATERHOUSE (Equipment Leasing Audit) 70 CA4 685 [See: Bily v Arthur Young 3 C4 370, T/AT 11/92; Soderberg v McKinney 44 CA4 1760, T/AT 6/96]
|
|
|