Caribbean Steel Company Ltd v Price Waterhouse (A Firm)

IN THE SUPREME COURT OF JUDICATURE OF JAMAICA

IN THE CIVIL DIVISION

SUIT NO. 19981C-166

BETWEEN CARIBBEAN STEEL COMPANY LIMITED CLAIMANT

AND PRICE WATERHOUSE (A FIRM) DEFENDANT

Gordon Robinson, Christopher Honeywell and Minett Palmer instructed by Palmer & Walters for

claimant.

Sandra Minott-Phillips and Christopher Kelman instructed by Myers, Fletcher & Gordon for

defendant I

Heard: December 5th 6th 2005 and May 24th 2006 ~

JONES, J:

[I] "The office of auditor is of high antiquity." It is not easy to determine the exact date of its origin,

but it can be said that from as early as 423 B.C, Aristophanes, the famous Greek comedy writer

refers to the incorrect accounts of Pericles in his play "The Clouds". It can also be said that the

ancient Egyptians and Babylonians set up auditing systems in which everything that went into and

came out of storehouses were double-checked. These "audit reports" were given out loud, hence

the later term "auditor", derived from the Latin "audire", to hear.

[2] Price Waterhouse is an international firm of auditors and accountants who were engaged as

auditors of Caribbean Steel Company Limited (Carib Steel) and Caribbean Cable Company Limited

(Carib Cable) and who were subsequently requested to conduct a valuation of the shares of Carib

Cable a company, which the auditors were aware, Carib Steel intended to acquire. Carib Steel is a