Carl Mills and Persis Moore Analyze Accountant Liability in Michigan for ABA 50-State Survey

Carl Mills and Persis Moore authored an update to the Michigan chapter of the American Bar Association’s 50-State Survey of Accounting and Auditing Liability Issues, a comprehensive resource examining liability frameworks across jurisdictions.

The Michigan chapter provides an overview of the state’s legal framework for accountant malpractice claims, focusing on the statutory scheme governing liability. It analyzes the circumstances under which accountants may be held liable, including claims involving fraud, intentional misrepresentation and negligence asserted by clients or certain third parties identified in advance.

The chapter also outlines the core elements required to establish a malpractice claim, while explaining how Michigan law distinguishes between tort and contract-based claims. The authors also examine key defenses available to accountants, including statutes of limitations, comparative fault and lack of justifiable reliance, as well as procedural considerations such as expert testimony requirements.

The 50-State Survey of Accounting and Auditing Liability Issues is a collection of state-by-state analyses addressing the elements, defenses and legal issues commonly arising in actions against accounting professionals, providing practitioners with a practical guide to navigating these claims.

Read the chapter.