New York Office Secures Defense Award on Behalf of Accounting Firm in Professional Malpractice Trial Involving Exclusive Long Island Golf Club

New York, N.Y. (May 12, 2023) - New York Partner Mark K. Anesh recently secured a defense award in a professional malpractice matter that went to trial on behalf of an accounting firm that provided services to a golf club partnership and an affiliated corporation.  

The named plaintiffs in the case were minority partners who sued individually and derivatively on behalf of the general partnership and operating corporation that ran a prominent, exclusive golf club on Long Island. The plaintiffs filed the action in the Supreme Court, Nassau County, Commercial Division, seeking damages from the accounting firm for, among other things, professional malpractice. They claimed that the accounting firm aided and abetted the co-defendant managing majority partners in using a golf course as their “personal fiefdom and playground” by providing discounted services, merchandise, and membership privileges. In addition, the plaintiffs alleged that the accountants committed professional negligence by preparing incorrect audited financial statements, and that they breached the fiduciary duty they owed to the minority partners. 

Following a six-day trial, the court determined that the three-year statute of limitations for professional malpractice barred certain of the plaintiffs’ malpractice claims because they occurred prior to 2009. The court also held that the plaintiffs failed to demonstrate by a preponderance of evidence that the firm’s accounting methods were improper, or proximately caused qualifiable damages. Moreover, the court denied the plaintiffs’ request to disgorge the accounting firm’s fees and other various demands for relief.

Mr. Anesh serves as chair of Lewis Brisbois’ Legal Malpractice Practice and is a member of the national CLM Management and Professional Liability Advisory Board. His legal practice focuses on professional liability defense in matters involving lawyers, accountants, real estate professionals, insurance agents and brokers, and other miscellaneous professionals. Mr. Anesh also sits on the Insurance Committee of the New York State Bar; was an adjunct professor at Touro Law School and an assistant adjunct professor at Hofstra Law School; and is a frequent lecturer on risk management for lawyers and accountants.

For more information on this case, contact Mr. Anesh directly. Visit our National Trial Practice page and Professional Liability Practice page to learn more about our capabilities in these areas.

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