The Least Difficult Cases Are Those in Which Professionals Give
The least difficult cases are those in which professionals give careless advice or make misrepresentations causing negative economic consequences to third parties.
Although courts have traditionally denied the claims of third parties who suffered an economic loss as a result of the reliance on a professional's negligent misstatements, modern public intolerance of white collar crime has begun to override the court's underlying policy of protecting the professions.
The potential for third-party claims for economic loss resulting from negligent misrepresentations was first recognized in Canada in 1964.
In the case of a negligently prepared audit, a reasonably foreseeable use and reliance by a number of individual third parties establishes that the professional's duty of care exists. By applying the judiciary's imposed policy considerations at the second step of the test, the court is able to shield the professional from liability by limiting the use of the audit to its statutory purpose.