It is required to prove the causal connection for the liability of Auditors pursuant to art. 2047 Civil Code

Civil Cassation, Sec. I, sentence no. 28357 of December 11, 2020

The Supreme Court has ruled that it is up to the plaintiff to prove each and every constituent element of the liability of auditors in accordance with article 2407 of the Civil Code.

In particular the legitimacy judges have clarified the legal principle according to which the responsibility of the Auditors, in Italian company law, is configured as an omissive fact: as in all cases of omissive complicity in the illicit act of others, all the constituent elements of the judgment of responsibility must be proven, namely

(i) inactivity on behalf of the Auditor with regard to his control duties
(ii) event to be associated with the prejudicial consequence deriving from the director’s conduct; and
(iii) causal link, to be considered as existing where the regular performance of the auditor’s control activity could have prevented or limited the damage.

In the light of this principle, the Court of Cassation ruled that the auditor “is not automatically liable for every harmful event that occurred pending the company, as if he had a position of guarantee“. The Auditor is responsible only if it can be affirmed that the damage could have been avoided, if he had acted diligently implementing his supervisory powers provided by law.

Attached is sentence no. 28357/20 of the Civil Cassation.

Fabiano Belluzzi

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