However, Deloitte & Touche, liquidator to BCCI, said it would seek to overturn the judgment in the Court of Appeal. Deloitte & Touche is pursuing Ernst & Whinney, a predecessor of Ernst & Young, for a total of $3.5bn - including the $866m struck out
yesterday - and has made allegations of negligence, breach of contract and breach of duty.
In his judgment, Mr Justice Laddie stated that, had the liquidator's submissions been accepted, "they would represent a radical extension of the liabilities shouldered by an auditor".
Nick Land, a senior partner of Ernst & Young, said he was "not surprised" that the claim had been found unsustainable.
Christopher Morris, a partner of Deloitte & Touche said: "The result is disappointing, but we shall be taking the matter to the Court of Appeal and hope to have the order reversed, as we did on a previous occasion".