Legal Opinion

Chelsea Hous. Auth. v. McLaughlin

Massachusetts Supreme Judicial Court

Decided July 9, 2019No. SJC-12635PublishedCited by 12 opinions

1Opinion of the CourtGants, C.J.

**580*713Under the equitable common-law doctrine of in pari delicto, a plaintiff who has committed fraud cannot recover damages resulting from the negligence of an accountant in failing to detect the plaintiff's fraud, unless such relief is required as a matter of public policy. See Merrimack College v. KPMG LLP, 480 Mass. 614, 625, 108 N.E.3d 430 (2018). In Merrimack College, we held that, where the plaintiff is a corporation, it is barred under the doctrine from recovering damages for the negligence of its accounting firm in failing to detect the corporation's fraudulent conduct only if the…

2Cases cited23 opinions

  1. Arthur Andersen LLP v. United StatesSupreme Court of the United States · 2005
  2. Nelson v. Adams USA, Inc.Supreme Court of the United States · 2000
  3. Ng Bros. Construction, Inc. v. CranneyMassachusetts Supreme Judicial Court · 2002
  4. Industrial Finance Corp. v. State Tax CommissionMassachusetts Supreme Judicial Court · 1975
  5. Attorney General v. School Committee of EssexMassachusetts Supreme Judicial Court · 1982

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3Cited by12 opinions

  1. BUSINESS INTERIORS FLOOR COVERING BUSINESS TRUST v. GRAYCOR CONSTRUCTION COMPANY INC. & OthersMassachusetts Superior Court · 2024
  2. Beverly Gardner v. Saint Thomas Midtown Hospital (Dissent)Tennessee Supreme Court · 2023
  3. Business Interiors Floor Covering Business Trust v. Graycor Construction Company Inc.Massachusetts Supreme Judicial Court · 2024
  4. Commonwealth v. J.F.Massachusetts Supreme Judicial Court · 2023
  5. Dennis Harold Ultsch v. HTI Memorial Hospital Corporation (Dissent)Tennessee Supreme Court · 2023

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