Duty of care United States corporate law
in ultramares corporation v touche, case concerning touche, niven & company (now deloitte) across nyse, cardozo cj held ordinary duty of care applicable professionals performing services requires people act care , caution proper calling . the duty of care owed people performing services others is, in principle, applicable directors of corporations. speaking, duty of care requires objective standard of diligence , skill when people perform services, expected reasonable person in similar position (e.g. auditors must act care , caution proper calling , , builders must perform work in line industry standards ). in 1742 decision of english court of chancery, charitable corporation v sutton, directors of charitable corporation, gave out small loans needy, held liable failing keep procedures in place have prevented 3 officers defrauding corporation of vast sum of money. lord hardwicke, noting director s office of mixed nature , partly of nature of public office , partly agents emp...