In Pari Delicto: Not For Third-Party Liability

Law360, New York (February 17, 2011, 1:03 PM EST) -- The New York Court of Appeals recently re-examined the centuries-old doctrine of in pari delicto, a doctrine that arises in disputes between two parties, each of whom has engaged in malfeasance. The scenario that spurred this contemporary analysis involves corporations whose officers have engaged in some sort of wrongdoing that was not detected soon enough by third-party gatekeepers, such as accounting firms and law firms.

“The doctrine’s full name is in pari delicto potior est condition defendentis, meaning ‘in a case of equal or mutual fault,...
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