Boyd Knight v Purdue

Boyd Knight v Purdue
Court	Court of Appeal of New Zealand
Full case name	Boyd Knight v Purdue
Decided	23 March 1999
Citation	[1999] 2 NZLR 278
Court membership
Judges sitting	Gault P, Blanchard J, Salmon J
Keywords
negligence

Boyd Knight v Purdue [1999] 2 NZLR 278 is a cited case in New Zealand regarding liability for negligent misstatements [1]

Background

After losing their investment of $750,000 in Burbery Mortgage Finance & Savings Ltd, the plaintiffs sued the auditors to recover their investment, on the basis that without their audit certificate, that under the Securities Act, there would not have been a prospectus, and so no investment in the first place.

In the High Court, they won their claim, albeit reduced by 50% due to contributory negligence due to the fact that it was a speculative investment in the first place.

The auditors appealed.

Held

The Court of Appeal reversed the High Courts award of damages, on the basis that the plaintiff's had admitted they had not read the advert as a "true and fair view" of the accounts.

References

1. McLay, Geoff (2003). Butterworths Student Companion Torts (4th ed.). LexisNexis. ISBN 0-408-71686-X.