The Fallacy of Expanding Accountants’ Liability

Friday, January 1st, 1988 at 12:00 am by Thomas L. Gossman
Thomas L. Gossman, The Fallacy of Expanding Accountants’ Liability, 1988 Colum. Bus. L. Rev. 213

This article attempts to demonstrate the fallacy of expanding accountants’ negligence liability to third parties as suggested by the new tort rule. This is done by (1) examining the history of accountants’ negligence liability as it was governed by the three rules that were adopted prior to 1983; (2) analyzing these rules and their judicial variations; (3) summarizing the consensus of the courts as of 1983; (4) analyzing the cases in support of the new tort rule and (5) discussing the public policy considerations concerning its implementation. It is submitted that the new rule is not supportable either jurisprudentially or by considerations of sound public policy.

Author Information

Associate Professor of Law, Western Michigan University College of Business. B.S. 1963, J.D. 1966, Indiana University.