Ncp Litigation Trust, Plaintiff-Respondent v. Kpmg LLP, Defendant-Appellant

Summary

The Supreme Court of New Jersey held that the imputation doctrine does not bar a litigation trust, representing the shareholders of a bankrupt corporation, from suing its former auditor for negligence. The Court affirmed the Appellate Division’s decision and remanded for the complaint to be reinstated. The Court also affirmed that the trust, as a successor‑in‑interest, may bring the negligence claim on behalf of the shareholders. Separate dissenting opinions argue that the majority’s extension of the doctrine is unwarranted and that the imputation defense should apply to negligent auditors.