Real Estate Investors’ Claims Against CPA Firm Shot Down on a Motion To Dismiss and the Court of Appeals Affirms
Billy Newcomb and Joe Kingma represented a large Atlanta accounting firm that was sued by a real estate investor and his wife. The plaintiffs had sold several million dollars of real estate and needed to find substitute property to complete their tax free exchange. It was uncontroverted that the accountant, who was a social acquaintance of the plaintiffs, suggested they invest in a development in which the accountant had already invested. The plaintiffs alleged they lost their life savings when the development failed, and they brought claims against the accounting firm for malpractice, breach of fiduciary duty, and fraud. CCS won a motion to dismiss on Oct 4, 2013, and the Georgia Court of Appeals affirmed the dismissal on July 3. 2014.