KPMG to face High Court

Accountants KPMG Peat Marwick and an associated Dublin firm face a negligence claim in respect of advice given on the u10m purchase of an Irish leasing company in 1992. The action arose out of the purchase by Electra in 1992 of u10m in an Irish leasing company called the Cambridge Group. Eighteen months after the deal, Cambridge went into receivership. Proceedings were launched against KPMG on the basis of a report it had submitted to Electra on the value of Cambridge. Initially the High Court struck the claim out but in April this year it was reinstated by the Court of Appeal and that decision has just been upheld by the House of Lords which refused leave to appeal against the ruling.