Is a partnership liable to a chartered accountant for misrepresentation?

British Columbia, Canada


The following excerpt is from Hughes v. Baldwin, 2003 BCSC 1891 (CanLII):

In MacDonald v. Schmidt (No.1), [1991] B.C.J. No. 3377 (Q.L.) (S.C.), Mr. Justice Holmes held a chartered accountant 25% liable for negligent misrepresentation (the plaintiffs were 75% contributorily negligent). The partnership was found vicariously liable for his negligence. The work was done in the ordinary course of business for a partnership client.

In MacDonald v. Schmidt (No.2), [1992] B.C.J. No. 230 (Q.L.) (S.C.), the other partners sought indemnity against the negligent accountant. The case was argued in the context of agency principles arising from section 7 of the Partnership Act.

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