BM&S Partner Dana K. Marjieh Secures Dismissal of Accountant Liability Suit

Black Marjieh & Sanford LLP is pleased to announce that Partner Dana K. Marjieh secured dismissal of all claims against the firm’s client, an accountant named as a third-party defendant in a professional liability action.

The case involved allegations that the firm’s client was professionally negligent in providing accounting and tax-related services. The Court agreed that no viable cause of action existed. BM&S demonstrated that the third-party complaint failed as a matter of law because common-law indemnification was unavailable, as the defendant was sued for its own alleged negligence rather than under a vicarious liability theory.

In the underlying action, the defendant was alleged to have committed errors in rendering tax advice, resulting in substantial damages to the plaintiffs. The defendant then commenced a third-party action seeking common-law indemnification and contribution. BM&S established that such claims could not be maintained because contribution is unavailable where the alleged loss is purely economic and the defendant was sued for its own negligence.

The Court granted dismissal of the third-party complaint and all cross-claims in their entirety, reaffirming important principles governing professional liability and common-law indemnification.

As a result, all claims against the firm’s client were dismissed prior to the commencement of extensive discovery, bringing the matter to a swift and favorable resolution. The ruling underscores BM&S’s commitment to vigorously defending its clients and achieving successful outcomes in complex litigation.