Accountants Malpractice Case Dismissed (2.29.08)

MMP&S successfully dismissed an accountants’ malpractice action based on the three year statute of limitations in accordance with the recent Court of Appeals decision, Williamson v. Price Waterhouse Coopers (2007).

The plaintiff, LS Inc. alleged that the defendant accounting firm negligently performed audits between 2000 and 2004 which permitted the president of the company to embezzle $3 million. MMP&S filed a summary judgment motion before Justice Shirley W. Kornreich of the Supreme Court, New York County contending that the professional audit services provided by our client ceased in March 2001, and as such, the case was untimely. Further, we successfully contended that the plaintiff cannot rely on the continuous representation doctrine as our client did not continue to provide services to LSI for the audit at issue, and that there was no nexus between the work performed by our client and the subsequent accounting firm.

The Court agreed and dismissed the case, citing Court of Appeals precedent.

LS Inc. v. Paul Iadanza CPA P.C.

(Supreme Court, New York County, February 29, 2008)

News & Events

Publication in Scottsdale Insurance Co. Newsletter
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