Business Law : Accountant Liability ( Richie Rich V. Mrs .Sweet

Defendant's brief in support of defendant’s motion for Summary Judgment

Introduction

Agnes Sweet is a 61 year old widow who has enlisted the service of Richie Rich, an accountant for the provision of advice regarding the investments that Sweet should make in different companies. Despite the fact that both Sweet and Rich has had a long working relationship, a single investment advice given by Rich to sweet has caused her to lose substantial amount of money. This occurred when Rich recommended that Sweet invests in Kuick Kash, a check cashing business, where Rich was the accountant of the Firm. The plaintiff depended fully on the dependant, since they had a long working relationship, and her vision was worsening as she grew older, therefore, when she was given the investment recommendation, she glanced at it casually, and then accepted the recommendation, despite the fact that there was a disclaimer on the recommendation, which would have informed her on the risks associated with investing in the company. The plaintiff accused the defendant for Accountant Professional Negligence and Negligent Misrepresentation, after she suffered the loss of the money she had invested in the company. Therefore, this discussion seeks to assess the liability of the defendant for the two accounts on which he is accused, with a view to submit a defendant's brief in support of defendant’s motion for Summary Judgment, in the case Agnes Sweet V. Richie Rich.

Statement of facts

There are various facts that underlie the case. The fundamental fact underlying this case is traceable in the case Robert Wooler Co. v. Fidelity Bank, 479 A.2d 1027 (1984), which outlines the elements of professional negligence for an accountant. The case gives the distinctive definition of accounting services; audited or unaudited accounting services. In both forms of accounting services, the accountant agrees to prepare financial statements for the clients, but the fundamental difference is that; in...