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Michael A. KluthoBassford Remele, Minneapolis, MN

Member Achievement and Case News: Featured

Expert Defect: Accounting Malpractice Fails

Monday, December 17, 2018   (0 Comments)
Posted by: Tom Jensen
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Client paid substantial back taxes and penalties for errant tax return preparation and sued accountant for malpractice. Issue presented on motion was whether client's expert sufficiently articulated the standard of care and breach. The expert's report did not specify the standard of care, nor did it specifically state that defendant breached that standard. Rather, the report suggested that other approaches might have been successful, but it did not conclude that defendant's conduct rose to the level of malpractice. Trial court dismissed claim and ruling was affirmed in Broz v. Plante & Moran PLLC, 2018 WL 6517758 (Mich. App. Dec. 11, 2018). Appeals court noted it is true that expert stated what typically is done in a timing sense of accounting actions, but he failed to specifically identify what is standard practice or whether the actions and advice the defendant gave actually breached those professional standards. "Advice from attorneys, doctors, and accountants can be unsatisfactory in that it does not produce the desired results, yet still be within the standard of care." 

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