Two kinds of cases under one name
Accounting litigation usually means one of two things. The first is a dispute with an accountant or accounting firm, often a claim that negligent audit, tax, or bookkeeping work caused a loss. The second is a dispute in which a party asks a court to require someone who controlled money on its behalf to account for it, a remedy that in New York is generally tied to a fiduciary relationship, such as one between partners, co-owners, or a trustee and a beneficiary. Business divorces, estate disputes, and joint ventures often include this kind of claim. In both kinds of cases, financial records and their interpretation become central, and a retained forensic accountant is often involved.
Who can sue an accountant
When a claim is brought against an accountant, a key early question is whether the person suing was the accountant's client. New York limits claims by non-clients for negligent work, generally requiring a relationship close to that of a client, and that limit often decides the case at an early stage. Investors and lenders who relied on financial statements may therefore face more hurdles than the business that hired the firm. Engagement letters also matter, because they may define the scope of the work, limit liability, or require arbitration. A claim that an accountant knowingly helped a fraud is treated differently from a claim of carelessness and is usually harder to prove.
Preparing a case built on the books
Gather the engagement letters, the work product you received, tax returns, financial statements, general ledgers, and bank records for the period in question. If you are seeking an accounting from a partner or co-owner, the operating or partnership agreement and any record of requests for information you made are important. Preserve electronic accounting files in their original format, because metadata and change histories can matter. Do not take company records you are not authorized to access; ask about the proper route first. At an initial meeting we identify which kind of case this is, look at whether the claim fits the relationship involved, and talk about whether a forensic review should come before or after filing.
