Case report: Court rejects ‘opportunistic’ negligence claim against EY

The High Court has rejected a claim for damages against Ernst & Young (EY) in connection with financial and commercial due diligence work undertaken on the acquisition of Esporta health and fitness clubs by Barclays Bank and Bell Leisure Group (Barclays Trust Co. (Jersey) Limited v Ernst & Young LLP [2016] EWHC 869 (Comm)).

EY was engaged late in the acquisition process to provide limited ‘top up’ due diligence. In fact, by the time the firm was engaged, the sale and purchase agreement had already been signed and the buyers had paid a non-refundable deposit of over £23m.