OP successfully defeated a motion to dismiss its client’s accounting malpractice claim based on the continuous representation doctrine – normally a challenging endeavor in New York. OP’s client, a designer and manufacturer of luxury women’s apparel, brought an accounting malpractice claim against its former accounting firm and its member, which for years served as the client’s de-facto accounting and finance department. The defendants sought to dismiss the action, arguing that it was barred by the applicable three-year statute of limitations. OP was able to demonstrate through emails and other documents the breadth of the accountants’ services throughout the period of representation and that the services were interrelated and continuous. The court refused to dismiss the complaint and held that the client had adequately demonstrated that the services were continuous and therefore the statute of limitations was tolled during that entire period of representation.
Darby Scott, Ltd. v. Michael S. Libock & Co LLC CPAS, et al., Index No. 653044/2013 (Sup. Ct., N.Y. County)