Accountants’ Common Law Negligence Liability to Third Parties
Although the statutory liability of accountants to third parties under the federal securities laws is fairly clear, the scope of accountants’ common law negligence liability varies greatly among the states. This article begins by discussing the historical background of accountants’ common law liability for negligence. The article then presents the recent judicial decisions and rationales for their limitations on accountants’ third party liability. Finally, the article summarizes and analyzes the various judicial positions and supports the application of a traditional proximate causation philosophy to accountants’ negligence liability.
Volume 2013 | Issue 3
A selection from our current issue.
- The Glass Boardroom: The SEC's Role in Cracking the Door Open so Women May Enter
by Tamara S. Smallman
- Settling on an Interpretation of "Instrumentality" in the FCPA
by Justin Epner
- Who’s Leading the Blind? Aimster, Grokster, and Viacom’s Vision of Knowledge in the New Digital Millennium
by Fiona Finlay-Hunt
- Noise Adopters in Corporate Governance
by Michal Barzuza
- Regulation Through Substitution as Policy Tool: Swap Futurization Under Dodd-Frank
by Gabriel D. Rosenberg and Jai R. Massari
- State Ownership and Corporate Governance in China: An Executive Career Approach
by Li-Wen Lin