In the most recent edition of the Georgia Bar Journal, Teresa E. Adams and J. Marbury Rainer address the paradigm shift in accountant liability to 3rd parties in Georgia. Under traditional Georgia law, negligence suits could only be sustained against accountants by parties who were in contractual relationships with the accountants. Accordingly, non-clients could not customarily bring a successful suit against accountants in Georgia courts. However, most courts across the nation are now hearing claims of negligent misrepresentation that have been brought by 3rd parties to recover damages allegedly caused by their detrimental reliance upon the accountant’s work.
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Reprinted with permission from the Georgia Bar Journal, Volume 20, Number 2, October 2014. Copyright State Bar of Georgia. Statements expressed within this article should not be considered endorsements of products or procedures by the State Bar of Georgia.