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Statute of limitations for accounting malpractice lawsuit

On Behalf of | Mar 1, 2024 | Accounting Malpractice

People in Tennessee choose to work with accountants for many reasons. An accountant is supposed to follow specific guidelines and provide a client with service based on the standards of the profession. When they fail to follow these standards, accounting malpractice may occur, which can lead the client to seek compensation for their damages through a lawsuit. When filing a civil lawsuit in Tennessee, it’s important for the person filing to understand that there is a statute of limitations for filing an accounting malpractice lawsuit. 

Statute of limitations 

Many civil matters have statutes of limitations, and this includes filing an accounting malpractice lawsuit. According to Title 28, Chapter 3, which references professional malpractice actions related to tort or contract, the action must commence on the date on which the cause of action accrued. This applies to licensed public accountants and certified public accountants.  

When filing an accounting malpractice lawsuit, no action may be taken against a certified public accountant after five years from the date on which the act of omission occurred. This law excludes cases where fraudulent concealment is an issue. In this case, the lawsuit must be completed within one year of the date on which the offending event was discovered.  

Legal advice 

Filing a lawsuit against an accountant for malpractice comes with many challenges. One must show evidence in court to prove that the accountant acted in a way that doesn’t align with professional standards. Tennesseans who believe they are victims of accounting malpractice can benefit from legal advice from someone who knows the laws and can provide guidance on the next steps to take.