Maniscalco v. Porte Brown LLC, 2018 IL App (1st) 180716 (11/30/18)
Brief Summary
Illinois' First District Appellate Court held that the five-year statute of repose and two-year statute of limitations governing claims against accountants barred plaintiffs' malpractice claims against their longtime accountant and tax advisor. The court also held that the continuous course of treatment doctrine did not apply to the plaintiffs' accounting malpractice claims.
Complete Summary
On August 21, 2017, plaintiffs filed accounting malpractice claims against defendants—their longtime accountants—dating back to at least 1994. Plaintiffs alleged that defendants provided advice and services in 2009 and years prior regarding tax schemes that increased the risk that the owners could lose corporate protection for their alleged conduct. Another company (Steiner Electric) sued one of plaintiffs' companies in 2009. Due in part to defendants' advice, Steiner Electric obtained a default judgment against plaintiffs' company, which at that time was out of business and had no assets. According to plaintiffs, the default judgment allowed Steiner Electric to sue plaintiffs in 2010, which resulted in Steiner Electric piercing the corporate veil and obtaining a judgment against plaintiffs—jointly and severally—causing damages in excess of $421,000.
The trial court granted defendants' motion to dismiss, finding plaintiffs' claims were time-barred under both the two-year statute of limitations and the five-year...
