• New York Court of Appeals Holds No Third-Party Liability Exists For Corporate Misdeeds
  • November 16, 2010
  • Law Firm: Hiscock Barclay LLP - Syracuse Office
  • In a decision applicable to two matters, Kirschner v. KPMG LLP and Teachers’ Retirement System of Louisiana v. Pricewaterhouse Coopers LLP, the New York State Court of Appeals examined whether third-party claims by corporate representatives brought against professional accountants whose negligence or collusion aided in improper or fraudulent corporate conduct that resulted in harm to employees, shareholders and/or creditors were actionable. The decision essentially focuses on whether the Court would reinterpret New York common law to allow corporations to shift the responsibility for their own agents’ misconduct to other involved parties. In a four to three decision, New York’s Highest Court determined the doctrines of in pari delicto and imputation, which are “embedded in New York law” and “remain sound,” barred such claims.