MMP&S Obtains Pre-Answer Dismissal in Accounting Malpractice Case Seeking Nearly $1 Million in Damages

In Leichter v. Max Kolbrenner et al, MMP&S successfully obtained a pre-answer dismissal of all claims brought by a plaintiff against our client, an accounting firm in an accounting malpractice matter that sought nearly $1 million in damages. The complaint set forth allegations against the accounting firm for tax fraud, accounting malpractice, breach of fiduciary duty and negligence, related to the filing and preparation of joint income tax returns for plaintiff and her ex-husband. The plaintiff alleged that the accountant had improperly failed to disclose her ex-husband’s income from his various business interests on their joint tax return, for a period spanning over ten years. MMP&S made its initial motion to dismiss on the grounds that proper service had not been perfected on the accounting firm, and that the complaint failed to state a cause of action upon which relief could be granted. MMP&S utilized the documentary evidence the plaintiff attached to the complaint, including the tax returns and Schedule-Cs indicating that all of the ex-husband’s business interests and income were properly claimed on the returns. Additionally, MMP&S successfully argued that the entire action was time-barred based upon the three-year statute of limitations for claims grounded in accounting malpractice. The Court granted the motion and dismissed plaintiff’s complaint. The plaintiff then moved to set aside the dismissal arguing that service on the accountant was proper, and the action was timely. MMP&S successfully opposed plaintiff’s second motion, and the Court upheld its dismissal of plaintiff’s complaint and denied plaintiff’s motion to set aside the Court’s initial decision.

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