Price Waterhouse v Kwan

Price Waterhouse v Kwan [2000] 3 NZLR 39 is a cited case in New Zealand regarding liability for negligent misstatements.

Price Waterhouse v Kwan
Court	Court of Appeal of New Zealand
Full case name	PRICE WATERHOUSE Appellant AND P KWAN AND OTHERS Respondents AND BETWEEN PRICE WATERHOUSE Appellant AND K D HUGHES per N M HUGHES Respondent
Decided	16 December 1999
Citation	[2000] 3 NZLR 39
Transcript	Court of Appeal judgment
Court membership
Judges sitting	Gault J, Keith J, Tipping J
Keywords
negligence

Background

Price Waterhouse were the auditors of a law firm. It was later claimed that Price Waterhouse were negligent in their audits resulting in them losing their investments.

Held

As the purpose of the audits was for the protection of clients money, there was sufficient proximity to hold that PW owed them a duty of care, and were accordingly ordered to pay damages.

The previous ruling in the McLaren Maycroft & Co v Fletcher Development Co Ltd case was overturned.