On October 21st, the New York Court of Appeals addressed certified questions on New York's in pari delicto law posed by two cases. Both cases, the first arising out of the collapse of Refco and the second out of the near collapse of AIG, allege that corporate insiders acted to the detriment of their company and seek to hold the insiders, lawyers and auditors liable. Refusing to expand imputation principles or the adverse interest exception to the in pari delicto doctrine, the New York Court of Appeals held that a corporation is responsible for its agent's acts even if particular acts were unauthorized. A fraud that benefits the corporation is not adverse to the corporation's interests even if it was motivated by the agent's desire for personal gain. Kirschner v. KPMG, LLP and Teachers' Retirement System of Louisiana v. PricewaterhouseCoopers LLP.