Lloyd's Maritime and Commercial Law Quarterly
EXTENT OF AUDITORS’ LIABILITY
Alexander v. Cambridge Credit Corp. Ltd.
By a majority, the New South Wales Court of Appeal1 has allowed the auditors’ appeal from the decision of Rogers, J., who had awarded damages of A$145 million to the receivers of Cambridge Credit Corporation.
Cambridge Credit, a finance and real estate concern, brought proceedings against its auditors for breach of contract. While admitting the breach, for the purpose of the appeal, the auditors denied they had caused the massive losses suffered by Cambridge Credit. In 1971 the auditors had wrongly certified that Cambridge
19