PracticeAccounting FirmsEquitable battle heads for Lords

Equitable battle heads for Lords

Whatever the outcome of last week's Appeal Court wrangle between Big Four firm Ernst & Young and Equitable Life, the decision will be contested at the House of Lords.

Link: Equitable court deal a possibility

An Appeal Court ruling should be handed down next month, with experts expecting it to be referred to the House of Lords in the autumn.

Only then will the two companies know exactly what it is they are fighting over.At the time of the Appeal Court battle, Equitable Life had been given the go ahead to pursue up to £500m in damages against the Big Four firm.

Ernst & Young wanted this ruling struck out completely, while Equitable wanted it increased, as well as a £2.6bn claim reinstated for damages incurred as a result of losing the opportunity to sell the mutual.

One source working close to the case said that from court transcripts itappeared that ‘it certainly wasn’t going all Ernst & Young’s way’.

Commentators expect it to ultimately be settled out of court, with the amount dependent on the level of liability insurance the Big Four firm has taken out.

Should E&Y lose significantly, individual partners face the prospect of bankruptcy.

Related Articles

Productive accountancy firms lead the way

Accounting Firms Productive accountancy firms lead the way

1d Simon Adcock, HSBC
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

2d Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

1w Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

2w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

2w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

3w Emma Smith, Managing Editor