COMM 393 Study Guide - Midterm Guide: Northguard, Financial Statement
Document Summary
Hercules managements ltd. v. ernst & young case brief. The appellants in this case, hercules managements and max freed, were shareholders in a firm called. Northguard acceptance limited and northguard holdings ltd. (ngh) were in a business of lending and investing money on the security of real property mortgages. Ernst & young, a firm of chartered accountants, performed annual audits for nga and ngh since 1971. In 1984, nga and ngh went into receivership. Hercules, freed and several investors claimed that the auditors negligently prepared financial statements for. 1980, 1981, and 1982, which led them to incur investment losses and losses in value of their shareholdings. Hercules and freed alleged that they had a contract with the auditors where the auditors would protect the individual interests of the shareholders in the audit. The plaintiffs" claims were dismissed at trial court and by the manitoba court of appeal. They decided to appeal to the supreme court of canada.
