Posts Categorized: Accounting and Accountants

Posted: April 28, 2017

Continuous Representation Doctrine Inapplicable if Limitation Period Set By Contract, Not Statute

On April 20, 2017, the First Department issued a decision in Aaron v. Deloitte Tax LLP, 2017 NY Slip Op. 03051, holding that the continuous representation tolling doctrine did not apply to an accounting malpractice claim where the limitations period applicable to the claim was set by contract, not statute, explaining: The engagement letter, which... Read more »

Posted: January 10, 2017

Negligent Misrepresentation Claim Against Accountants Fails For Lack of Link to Plaintiff’s Use

On January 5, 2017, the First Department issued a decision in GSP Finance LLC v. KPMG LLP, 2017 NY Slip Op. 00087, affirming the denial of a motion to amend to add of a negligent misrepresentation claim against an accounting firm, explaining: The court . . . providently exercised its discretion in denying plaintiff’s motion... Read more »

Posted: December 8, 2016

Accounting Malpractice Claim Properly Dismissed for Lack of Privity

On November 30, 2016, the Second Department issued a decision in Weinstein v. CohnReznick, LLP, 2016 NY Slip Op. 08068, affirming the dismissal of an accounting malpractice claim, explaining: The plaintiffs alleged that Cohn, an accounting firm, assisted nonparties Lawrence Levine and David Levine (hereinafter together the Levines) in wrongfully acquiring the plaintiff Solas Plumbing... Read more »

Posted: February 7, 2016

Claims Against Auditors of Failed Fund Dismissed Under In Pari Delicto Doctrine

On January 19, 2016, Justice Bransten of the New York County Commercial Division issued a decision in FIA Leveraged Fund Ltd. v. Grant Thornton LLP, 2016 NY Slip Op. 50093(U), dismissing a claim under the in pari delicto doctrine. In FIA Leveraged Fund, the plaintiffs brought a claim against the defendants “to recover approximately $47... Read more »

Posted: August 11, 2015

Action May Be Brought Against Accountants For Failing To Disclose Client’s Employee’s Financial Wrongdoing

On July 21, 2015, Justice Demarest of the Kings County Commercial Division issued a decision in JAG Orthopedics, P.C. v. AJC Advisory Corp., 2015 NY Slip Op. 51111(U), denying most of defendants’ motion to dismiss. In this action, plaintiff’s doctor-principal discovered that his office manager had embezzled money by misusing a company credit card and... Read more »

Posted: January 21, 2015

“But for” Standard for Legal Malpractice Applies Equally to Accountant Malpractice Claim

On January 8, 2015, Justice Friedman of the New York County Commercial Division issued a decision in Hamadeh v. Spaulding, 2015 NY Slip Op. 30027(U), examining the causation standard for an accounting malpractice claim. In Hamadeh, the defendants moved to dismiss the accounting malpractice claims against them. In deciding that motion, the court reviewed the... Read more »