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Question 1— Legal Liability
Sydney solicitor Bruce Dennis will be coordinating a class action for some 600 HIH shareholders against the auditors — Andersen’s (as the firm is now known). In addition, HIH's liquidator, Tony McGrath of KPMG is also likely to seek to recover funds for HIH creditors.
a) Identify and discuss in detail THREE (3) relevant legal concepts which are related to the collapse of HIH. In your answer, explain why these principles are relevant - (9 marks).
b) What conditions need to exist for a negligence action to be upheld?



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