Stanilite Pacific Limited (In Liquidation) & Anor v William Henry Brown Seaton & Ors Trading as Price Waterhouse [2004] NSWSC 376

Reported Decision : 52 ACSR 646

New South Wales Supreme Court

CITATION : Stanilite Pacific Limited (In Liquidation) & Anor v William Henry Brown Seaton & Ors Trading as Price Waterhouse [2004] NSWSC 376 revised - 14/05/2004 HEARING DATE(S) : 13,14,15,16,20,21,22,23 October 2003 and 2,3,4,8,10,11,15,16,17 & 18 December 2003. JUDGMENT DATE : 12 May 2004

JURISDICTION: Equity Division Commercial List JUDGMENT OF : Bergin J DECISION : Amended Summons Dismissed

CATCHWORDS : [Negligence] - Claims that defendants, auditors, were negligent in (a) consenting to the inclusion of unqualified audit opinion on 31 December 1994 accounts of the plaintiffs in Prospectus on 3 May 1995 - and (b) signing unqualified audit opinion in respect of 30 June 1995 accounts of the plaintiffs - Allegations that the use of earned value method of bringing profit on telecommunications contracts to account was inconisitent with relevant accounting standards - Whether such contracts construction contracts - Whether material loss forseeable. [Contract] - Claims that same conduct amounted to breaches of contract. [Statute] - Claims that same conduct amounted to breach of provisions of Corporations Law in force in 1995. LEGISLATION CITED : Corporations Law AWA Ltd v Daniels t/as Deloitte Haskins & Sells (1992) 7 ACSR 759 Daniels & Ors (formerly practising as Deloitte Haskins & Sells & Ors) v Anderson & Ors (1995) 37 NSWLR 438 CASES CITED : Mahony v J Kruschich (Demolitions) Pty Ltd & Anor (1985) 156 CLR 522 Onassis & Calogeropoulos v Vergottis [1968] 2 Lloyd's Rep 403 Swiss Bank Corporation v Lloyds Bank Ltd and Ors [1982] AC 584 Stanilite Pacific Limited (In Liquidation) (First Plaintiff) PARTIES : SL Electronics (NSW) Pty Ltd (In Liquidation) (Second Plaintiff) William Henry Brown Seaton & Ors Trading as Price Waterhouse (Defendants) FILE NUMBER(S) : SC 50055/01 COUNSEL : FM Douglas QC, and CE Adamson SC (Plaintiffs) JH Karkar QC, IM Jackman SC and MR Elliott (Defendants) SOLICITORS : Deacons (Plaintiffs) Minter Ellison (Defendants)