The Accountant/Attorney Liability Reporter: November 2016
Inside this issue:
Punitive Damages Claims Against an Accounting Professional May Be Allowed to Proceed Based on Gross Negligence
California Ruling Indicates MFAA Fee Arbitrations Now Subject to One-Year Statute of Limitations Defense
In Tax Scheme Case, Fraud Claim Against Attorney Allowed to Proceed
New York Dismisses Breach of Fiduciary Duty Claim Against Accountants Based Upon Statute of Limitations
Read MoreThe Accountant/Attorney Liability Reporter: December 2014
Inside this issue:
Claim for Failure to Notify of Potential Fraud Allowed to Proceed
By Lindsey D. Smith, Esq.
Choice of Law and State Securities Law Prevent Dismissal of Auditor
Fiduciary Duty and Tolling of Limitations Period Considered in Connecticut
By Courtney A. Longo, Esq.
Alabama Court Dismisses a Fraud-by-Hindsight Action for Failure to Plead with Particularity
Appellate Court of Illinois Affirms Form 4549’s Sufficiency as Notice of Injury Triggering Statute of Limitations
By Amanda E. Mathieu, Esq.
In Pari Delicto: A Viable Defense in Limited Circumstances
By Jonathan A. Barnes, Esq.
Read MoreThe Accountant/Attorney Liability Reporter, December 2013
Inside this issue:
Accounting Firm Not Liable for Malpractice where Client Knowingly Filed a False Income Tax Return
By Peter M. Vetere, Esq.
Connecticut Appellate Court Partially Reverses Trial Court’s Entry of Summary Judgment in Favor of Defendant Accountant, but Refuses to Apply CUPTA to Professional Malpractice Claims
By Craig J. MacLellan, Esq.
Statutes of Limitation in Accounting Malpractice Cases
Appellate Court of Illinois Rejects Contractual Defense in Allowing Claim for Breach of Fiduciary Duty to Proceed Against Accountant
By Daniel C. Poteet
PCAOB Proposed Expanded Language for Auditor Reports
By By Cheryl A. Waterhouse, Esq.
Read MoreThe Accountant/Attorney Liability Reporter, December 2012
Inside this issue:
AICPA Issues Exposure Draft Of Proposals For Financial Reporting Framework For Small And Medium Sized Entities
By John B. Connarton, Jr., P.C.
New Jersey Supreme Court Provides Guidance On The Application Of N.J.S.A. 2A:53A-25: The Accountant Liability Act’s Limitation On Third Party Lawsuits Against Accountants
By Matthew P. Tuller, Esq.
Accounting Firm As Taxpayer Brought Up Short On Difference Between Compensation and Dividends
By John B. Connarton, Jr., P.C.
Following The Saying That If You Don’t Succeed, Try, Try Again, The U.S. District Court For The Western District Of Pennsylvania Recently Issued A Decision Denying A Motion To Dismiss An Amended Complaint Filed Against An Accounting Firm Where Seven Months Earlier The Court Had Allowed A Motion To Dismiss The Original Complaint
By Justin M. Jagher, Esq.
Third Party Liability for Tax Opinions: Sixth Circuit Rules Opinion Letter Actionable Under RICO
By Daniel DeBlander
Read MoreThe Accountant/Attorney Liability Reporter: September/October 2012
Inside this issue:
In Pari Delicto Defense Applies Against a Trustee Suing For Professional Negligence
By Amanda E. Mathieu, Esq.
PCAOB Issues Report on the Progress of the Interim Auditor Inspection Program
By John B. Connarton, Jr.
Legal Considerations for Adding a Partner to your Accounting Firm – One Cautionary Tale
By Sa’adiyah Masoud
Lender’s Lack of Reasonable Reliance on Audits of Borrower Precludes Finding Against Accountant
By John B. Connarton, Jr.
When Does Malpractice Occur?
By Justin R. Giles, III
Second Circuit Court of Appeals Affirms Importance of Pleading Requirements for Fraud and Strictly Applies Test for Accountant Liability to Investment Fund Investors Absent a Contractual Relationship
By Daniel C. Poteet, Esq.
Read MoreThe Accountant/Attorney Liability Reporter: March/April 2012
Inside this issue:
Liquidator of Insolvent Insurer Not Bound by Engagement Letter Terms
By Amanda Sirk
Litigation Privilege Protections Provided to Accountants Testifying as Expert Witness: The California Model
By Matthew P. Tuller
WashingtonState Court of Appeals Clarifies Start Point for Statute of Limitations in Accountant Malpractice Claims
By Daniel C. Poteet, Esq.
Engagement Letters: Ensuring that Statutes of Limitations Apply to Arbitrations
The Financial Accounting Foundation Issues Its Post-Implementation Report of Effectiveness of FIN 48
By John B. Connarton, Jr., P.C.
Engagement Limited to Compilation Limits Liability and Requires Complaint to Allege Specific Failures Within That Limited Standard of Care
By John B. Connarton, Jr., P.C.
Read MoreThe Accountant/Attorney Liability Reporter: December 2011
Inside this issue:
Accounting Firm Liability to Creditors
By Amanda Sirk
Accounting Firms Successful in Dismissing Fraud and Other Claims
By Justin Jagher
California Court of Appeals Interprets “Accrual” for Tort Claims Against Financial Advisors as Occurring When an Adverse IRS Determination is Made
By Peter C. Lenart, Esq.
Emerging Market Audit Risks – PCAOB Audit Practice Alert
Read MoreThe Accountant/Attorney Liability Reporter: August/September 2011
Inside this issue:
Junior Accountants Held to be Exempt from Wage and Hour Law Protections
By Katherine McAllister, Esq.
The Kovel Principle: Recent Developments and Practice Suggestions
By Jason Burke
Textron Revisited: Tax Accrual Workpapers Work Product Protection Issue Has Produced New Work Product Definition
By John B. Connarton, Jr., P.C.
To Make or Not to Make a Statement: Fraud Liability Under SEC Rule 10b-5 Narrowed
Reporting Requirements for Residents Maintaining Foreign Bank and Financial Accounts
Read MoreThe Accountant/Attorney Liability Reporter: March/April 2011
Inside this issue:
Fair Value Opinion Engagements
By John B. Connarton, Jr. P.C.
Auditor’s Obligation to Third Parties
By Nathanial Paty and Cheryl A. Waterhouse, Esq.
Accountant Compensation Dispute Governed By State Law When Not Specified in Agreement
By Justin M. Jagher
Auditor Obtains Dismissal of Claims by Shareholder Where Assets Invested with Bernie Madoff
Protecting Your Business Interests: Non-Competition and Other Restrictive Covenants
By Chris Whitten and Cheryl A. Waterhouse, Esq.
Read MoreThe Accountant/Attorney Liability Reporter: February/March 2010
Accountant Liability for Third Party’s Embezzlement
Threat of Tax Liability Enough to Hold Accountant Liable
Illinois Judge Allows Bankruptcy Trustee Another Chance to Hold Auditor Liable for Fraud
By Justin M. Jagher, Esq.
Existence and Potential Waiver of the Accountant-Client Privilege
By Douglas M. Marrano, Esq.
Court Dismisses Securities Fraud Claim Against Law Firm
By Mark D. Szal, Esq.
New York Court Awards Judgment to Homeowner Against Attorney Over Bankruptcy Advice
By Douglas M. Marrano, Esq.
Read MoreThe Accountant/Attorney Liability Reporter: October 2009
Inside this Issue
The Basics of Accountant Malpractice: Things Every Accountant Should Know
By Douglas M. Marrano, Esq.
The Importance of Engagement Letters
State Law Determines Whether Third-Party Suit Against Auditor Survives
By Justin M. Jagher, Esq.
Continuous Representation Doctrine in New York
Agreement to Extend Time to Sue Upheld
Read MoreThe Accountant/Attorney Liability Reporter: March 2009
Inside this Issue
New York Accounting Law Expands Oversight
First Circuit Recognizes Applicability of Work-Product Doctrine to Tax Accrual Workpapers
By John B. Connarton, Jr., P.C.
Document Retention for Accountants
By Justin M. Jagher, Esq.
Accountant Liability When a Corporation Commits Fraud
By Cheryl A. Waterhouse, Esq. and Eliana Nader
Law Firm Can Impose Financial Disincentives on Withdrawing Partners
Read MoreThe Accountant/Attorney Liability Reporter: April 2008
Inside this Issue
Deductibility of Investment Advisory Costs for Estates and Trusts After Knight
Accountants Prevail in Enforcing Limitation of Liability Clause in Engagement Letter
The Importance of Defining the Scope of the Engagement
Work Product Doctrine Protection for Tax Accrual Papers on Appeal
By Mark D. Szal, Esq. and Cheryl A. Waterhouse, Esq.
Auditor May Be Primarily Liable for Securities Fraud for Failure to Correct False or Misleading Financial Opinions
By Douglas M. Marrano, Esq.
Read MoreThe Accountant/Attorney Liability Reporter: October 2007
Inside this Issue
Immigration Impact On Employment Practices
First Circuit Finds No Attorney-Client Relationship Exists Between Counsel Retained By A Corporation And A Corporation’s Investors
Court Enforces Limitation Of Liability Clause In Accountant’s Engagement Letter
Court Holds Statute Of Limitation Begins To Run When Client Incurs Legal Fees To Defend Claims Arising From Accounting Firm
Read MoreThe Accountant/Attorney Liability Reporter: March 2007
Inside this Issue
Massachusetts Court Rules That Defendant May Seek Contribution From Plaintiff’s Counsel For Malpractice
Pension Protection Act of 2006 Alert: Potential Pitfalls, Penalties and Blacklisting for Appraisers – and Accountants, Attorneys and Fiduciaries?
Litigating In The World of Electronically Stored Information: An Overview of the Amended Federal Rules of Civil Procedure
First Circuit Upholds Decision Requiring Repayment of Corporate Indemnifi cation
Read MoreThe Accountant/Attorney Liability Reporter: October 2006
Inside this Issue
Engagement Letter and Good Record Keeping Lead to Accountant Defense Verdict
Closing Attorney Not Liable to Seller as Escrow Agent in Absence of Contract With Seller of Property
By Doulgas M. Marrano, Esq.
Massachusetts Probate and Family Court Addresses Lawyer’s Simultaneous Representation of Family Members
Domestic Asset Protection Trusts (DAPT)
Read MoreThe Accountant/Attorney Liability Reporter: June 2006
Inside this Issue
Trustees Who Breached Their Fiduciary Duties to a Charitable Trust were Removed from Office by the Court
The Massachusetts Supreme Judicial Court Addresses the Appropriate Standard of Care for Professionals
In Probate Actions Judges Enjoy Broad Discretion in Awarding Attorney’s Fees and Costs
Chapter 93A and Attorney Malpractice: More Than Mere Negligence
Estate Planning Reform and Client Inertia: Is the GRAT One Answer?
Read MoreThe Accountant/Attorney Liability Reporter: March 2006
Inside this Issue
SEC Enforcement Action Triggers Director’s Duty to Repay Corporate Indemnification
Continuing Representation Doctrine Does Not Defeat Statute of Limitations Defense
Massachusetts Supreme Judicial Court Rejects “Actual Malice” Test for Assessing First Amendment Protection Afforded Lawyers’ Courtroom Statements
Constructive Trust Imposed on Real Estate Purchased by Attorney Acting in Breach of Fiduciary Duty
Read MoreThe Accountant/Attorney Liability Reporter: December 2005
Inside this Issue
The Court of Appeals Finds Accountant Trustees Liable Under G.L. c. 93A
Court Upholds Consulting Firm’s Decision to Terminate at Will Employee
Partnership Agreement Invalid Where It Requires Departing Law Partners From Sharing Fees Earned After Departure
By Douglas M. Marrano, Esq.
