Reference no: EM132241359
Case Study: 4-8 Touche Ross & Co. v Bank Intercontinental, Limited Please analyze the issues in the case including giving a statement of the facts used by the Court to determine the outcome of the case. Then address the fact that at the end of his opinion, Judge Hull discusses that he changed his view of the case. What changed his view? If you were the Judge in this case, how would you have ruled and why?
Case 4-8. TOUCHE ROSS AND COMPANY v. BANK
INTERCONTINENTAL, LTD.
The Cayman Islands, Grand Court, 1986.
FACTS: Touche Ross of the Cayman Island (TR-Cay) did some auditwork in the Cayman Islands for Bank Intercontinental (BI). BI then sued Touche Ross (TR-Int’l) in Florida for negligently preparing the audit, claiming that
TR-Int’l was a multinational partnership with offices worldwide, including offices in New York. Touche Ross of New York (TR-NY) then sued BI in the Cayman Island, asking this court to enjoin BI from continuing its suit in Florida. The court granted an ex parte injunction, then gave BI an opportunity to introduce evidence at an inter pares hearing. At the hearing, the evidence showed that TR-NY and TR-Cay were both affiliated to TRInt’l (headquartered in Switzerland), and that all of the firms’ advertising suggested that they were part of a group of internationally affiliated companies.
ISSUE: Was TR-Cay part of a common multinational enterprise such that its misconduct would make the entire enterprise liable?
HOLDING: Yes.
LAW: When firms hold themselves out to be part of a common enterprise they all have joint liability for the obligations of each other.
EXPLANATION: The evidence tended to show that TR-Cay, TR-NY, etc., were all part of a common enterprise (TR-Int’l).
ORDER: Because the Florida court was holding a hearing on this same matter contemporaneous with the hearing that was going on in the Cayman Islands, and because the Florida court would not assume jurisdiction until it decided the question of whether or not TR-Int’l was a common enterprise, the Cayman Islands court withdrew its injunction. If the Florida court decided that there was a common Touche Ross enterprise, then it was proper for it to proceed; if it did not, and the case was dismissed, then the Cayman Islands injunction would be meaningless anyway.
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