PJC Malpractice 2024

PJC 84.5

E CONOMIC D AMAGES

PJC 84.5

Sample Instructions for Economic Damages—Accounting Malpractice

Explanatory note: Damages instructions in accounting malpractice cases are often necessarily fact-specific. The following instructions are illustrative only, using a hypothetical situation to give a few examples of how instructions may be worded to submit various legal measures of damages. Sample A—IRS penalties The amount, if any, of penalties [ assessed by ] [ paid to ] the IRS proximately caused by the negligence of Dora Dotson . Sample B—Taxes The excess tax paid by Paul Payne , proximately caused by the negligence of Dora Dotson , that cannot be recovered through an amended tax return. Sample C—The undiscovered malfeasance/fraud/risky investment The amount of loss from the [ malfeasance ] [ fraud ] [ risky investment ] in question from the time that it should have been discovered by Dora Dotson to the time it was discovered. Sample D—Additional accounting fees incurred Reasonable and necessary accounting fees incurred by Paul Payne for addi tional accountant services proximately caused by the negligence of Dora Dot son . Sample E—Value of the services The difference, if any, between the amount paid for the accountant services of Dora Dotson and the [ value of ] [ benefit conferred by ] the services rendered by Dora Dotson . Sample F—Damage to the business The [ lost profits ] [ unwarranted expenses ], if any, to the business proximately caused by the negligence of Dora Dotson .

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