Youhas v. Walters & Kondrasheff, CPAs, Case No. CV 164423 (Cal. Super Ct., Santa Cruz County 2010)

B Douglas Robbins

Case Conclusion Date:March 1, 2010

Practice Area:Litigation

Outcome:Complete Dismissal on Demurrer

Description:Plaintiff, Thomas Youhas ran a business called Toy Science. Unbeknownst to Mr. Youhas, his bookkeeper was embezzling hundreds of thousands of dollars from his company. Mr. Youhas sued his accounting firm, Walters and Kondrasheff claiming that the accounting firm should have set up controls to catch his bookkeeper’s embezzlement. Mr. Youhas’ claims were ill-founded since the accounting firm was not hired to set up controls; rather the firm was simply asked to prepare taxes. Our firm represented the accountants and had the entire lawsuit dismissed on demurrer. We argued, and the court agreed that (1) Mr. Youhas' Unfair Competition claim improperly plead damages, (2) that Mr. Youhas' emotional distress causes of action failed to assert non-economic harm, (3) that Mr. Youhas lacked standing to bring the lawsuit because he was not the real party in interest, and (4) that all claims were barred by the statute of limitations.