Judge Bars Suit Alleging Negligence by Hedge Fund Accountants Jul 13, 2008
Ramos rested his decision on the in pari delicto doctrine, which "bars a plaintiff from recovering from a defendant where each is equally at fault," and the Wagoner rule, set forth in , 944 F. 2d 114 (2nd Cir ... "The judge's decision was contrary to other case law in New York and the trend nationwide -- that a liquidator or receiver who steps into the shoes of a corporation is not bound to the in pari delicto doctrine," said Berman ... In granting summary judgment in favor of the accounting... (Law.com)
3rd Circuit Asks Pa. High Court to Clarify Accountant Liability Jul 4, 2008
In a case that could have a broad impact on whether and when accounting firms can be held liable in the wake of corporate scandals, a federal appeals court has asked the Pennsylvania Supreme Court to answer two questions relating to the doctrine of in pari delicto ... It reads: "Does the doctrine of in pari delicto prevent a corporation from recovering against its accountants for breach of contract, professional negligence, or aiding and abetting a breach of fiduciary duty, if those accountants... (Law.com)
Subprime Autopsy Scorches KPMG and O'Melveny & Myers Mar 27, 2008
One of KPMG's likely defenses against a claim from the estate, Missal wrote, is one of in pari delicto: If New Century is found to have participated in the fraudulent conduct, it will not be allowed to collect. "We strongly disagree with the report's conclusions concerning KPMG," said Dan Ginsburg, a spokesman for the accounting firm. (Law.com)
Bankruptcy Trustee Suits Cause Increasing Concern for Law Firms Nov 27, 2007
In pari delicto means "in equal fault." It is a defense based on the legal doctrine that a party cannot seek relief for a crime or tort for which he or she is also to blame. In pari delicto would bar a corporation whose top executives committed fraud on the company's behalf from suing others who may have aided that fraud ... "In pari delicto is real," said Cronin. (Law.com)
Court Rejects Bid for Return of $1 Million Paid to Suspended Attorney Oct 17, 2007
"Parties to an agreement that is violative of public policy who are in pari delicto may not seek the aid of the court to undo their transaction," wrote the judge, citing Miltenberg and Samton Inc. v. Mallor, 1 A.D.2d 458 (1st Dept. 1956). "Plaintiffs have failed to establish that the 1999 Agreement and/or the 2004 Agreement are in violation of New York's public policy, common law or the Code of Professional Responsibility.". (Law.com)
