Unlimited liability; accountants' legal exposure is fuzzy, but the bottom line is clear: damages are exploding

Article Abstract:

The year 1992 saw large judgments levied against accounting firms, a trend which had been in the making for some time. An American Institute of Certified Public Accountants survey showed that suits against small and medium-sized accounting firms doubled in the late 1980s. This trend is ascribed partly to the savings and loan crisis and plaintiffs' urge to hold someone liable if the thrift is bankrupt. Professionals' liability exposure has also been augmented by a decreased trust in authority.

Accountants, Malpractice

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Professionals defend themselves

Article Abstract:

Law and accountancy firms employed by Charles Keating began their defense in a Tucson, AZ, civil racketeering and fraud case Mar 13, 1992. Lawyers for the firms of Jones, Day, Reavis & Pogue; Arthur Young & Co; and Touche Ross & Co claimed to have been misled by Keating's American Continental Corp, thus enabling the insolvent company to sell bonds. Arthur Andersen & Co settled with the bondholder plaintiffs on the opening day of the trial.

Bank holding companies, Savings institutions, except federal, Accounting firms, Accounting services, American Continental Corp., AMCCQ

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Court blocks inspection of Gibson Dunn billing; business client says megafirm churned his file at $250 an hour

Article Abstract:

A Second District Court of Appeal panel ruled unanimously on Mar 30, 1995, that law firm Gibson, Dunn & Crutcher's markup on an associate's hourly billing is not relevant to a suit charging the firm with churning. Gibson Dunn charged $250 an hour for associate Marcy Shaffer's work, part of the services that Jeremy Simms, a retired land developer, says cost him $2 million in 16 months.

California, Gibson, Dunn and Crutcher

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