Accountants’ Professional Liability

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The attorneys in our Accountants’ Professional Liability Practice Group focus on the defense of accounting firms, persons, or practices in both the federal and state courts. In addition to defending civil matters, our attorneys represent accountants in disciplinary matters and provide counseling and risk management advice to individual CPAs, accountants, bookkeepers and their related firms.

With a CPA on our legal team, members of our group are intimately familiar with the nuances of accounting practices. From an attest engagement to a provision of bookkeeping services, our attorneys are well-versed in the various types of claims and litigation an accounting professional may face.

In all cases, our attorneys seek to present creative solutions to traditional legal issues. Whenever possible, we look for “business solutions” and often structure the resolution of cases by resurrecting the underlying transaction giving rise to the malpractice claim. Our attorneys have been successful in obviating claims and litigation by appearing in Tax Court to assist an insured’s client in successfully reversing an audit finding or assessment by the IRS.

Because many liability claims are resolved outside of the courtroom, we are accustomed to and skilled in alternative dispute resolution (ADR) proceedings. We often assess which cases belong in ADR versus traditional litigation, with the goal of directing matters to the appropriate forum for the most expedient, cost-efficient resolution.

Partnering with several national carriers, we are proud to provide an Accountants’ Professional Liability Hotline. This hotline offers pre‐claim assistance to accountant insureds on a 24/7 basis. Jonathan Kanov and Howard Mankoff, shareholders at Marshall Dennehey, oversee this hotline program.

Craig Hudson
Craig S. Hudson, Chair

Legal and Accounting Malpractice Claims Successfully Dismissed

Lawyers' Professional Liability
Accountants’ Professional Liability

We obtained a dismissal of plaintiff’s legal and accounting malpractice claims, in which the plaintiff claimed a prior unrelated legal settlement led to an avoidable tax liability. The plaintiff alleged that our attorney client was negligent in providing legal and accounting advice in regard to corrective tax filings following a legal settlement with a state entity. After multiple rounds of amended pleadings and briefing, the court entered an order adopting our lack of subject matter jurisdiction argument and dismissed the plaintiff’s complaints based upon a Rule 8 violation. 

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Accounting malpractice claim barred by the statute of Limitations.

Accountants’ Professional Liability

We obtained dismissal of an accounting malpractice claim on preliminary objections in the Philadelphia Court of Common Pleas. The plaintiffs alleged that their accountant improperly prepared their tax returns—as married filing jointly—and failed to claim business losses, that resulted in an unexpected tax liability being owed.

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Attorneys obtained an order of dismissal with prejudice on a Motion for Judgment on the Pleadings on behalf of an accounting firm

Accountants’ Professional Liability

Attorneys obtained an order of dismissal with prejudice on a Motion for Judgment on the Pleadings on behalf of an accounting firm. Plaintiffs filed a Certificate of Merit indicating that "expert testimony is unnecessary" for prosecution of its claims. The attorneys' argued that plaintiffs could not present expert testimony on the standard of care or causation and, since the averments of the complaint taken as a whole implicated matters requiring expert testimony, plaintiffs' entire case must fail.

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Attorneys successfully defended an accountant and his firm in a malpractice case

Accountants’ Professional Liability

Attorneys successfully defended an accountant and his firm in a malpractice case. Plaintiff filed a malpractice counterclaim to a collection action commenced by the accounting firm, and 25 days later plaintiff filed a separate action for malpractice against the accounting firm and the individual accountant. Defense attorneys filed praecipes for non-pros for failure to timely file a Certificate of Merit as to both actions.

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