BKS wins judgment for CPAs in accounting liability case

When financial or tax litigation arises, it is not uncommon for a defendant to blame its accountants and file a lawsuit against the CPAs seeking reimbursement. Julie R. Murzyn and Glenn W. Kuchel recently successfully fought off just such a challenge, prevailing on behalf of the CPAs, against a client that sued its accounting firm in both Indiana and Chicago for allegedly giving bad advice about the minimum wage to be paid to its dozens of employees over a span of many years—a staggering sum of money.

The successful defense was complicated by the fact that the laws are quite different about accountant liability and what defenses may or may not be available in Indiana and Illinois. Conflicts of laws issues had to be addressed because both the CPAs and the client conducted business both in Indiana and Illinois, thus blurring the state line (so to speak) of how to apply the laws of each state. By deftly and clearly explaining the issues to the court, the BKS attorneys were able to show that the significant part of the case had to be dismissed as a matter of law—and the court agreed. Following this ruling, the rest of the case against the CPAs quickly fell apart.

In any case such as this, timing is important because Indiana law provides a one year statute of limitations for accountant liability and prompt action can often be the difference between a successful and a disappointing outcome. The issues are further complicated because precisely what types of services are included within the statute is a topic of hot debate in these lawsuits.

In this case, the lawsuit against the CPAs unraveled when the BKS attorneys successfully argued that the shorter statute protected the CPAs from liability on all the services they had provided. If your firm or business has a complex legal issue to address, BKS’s experienced attorneys may be able to assist.

Beckman, Kelly & Smith

5920 Hohman Avenue
Hammond, Indiana 46320
Phone: 219.933.6200
Fax: 219.933.6201
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South Lake County Office
7880 Wicker Ave., Suite 101
St. John, IN 46373
Phone: 219.933.6200
Fax: 219.933.6201
Contact Us | Directions

Beckman, Kelly & Smith, in Hammond, IN, serves clients throughout the entire state of Indiana, including Gary, East Chicago, Portage, Merrillville, Valparaiso, Chesterton, Munster, Schererville, Highland, Whiting, Michigan City, Hammond, Crown Point, La Porte, South Bend, Elkhart, Lafayette, Lake County, Porter County, La Porte County, St. Joseph County, and Elkhart County.

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