Van Dyke v. Dunker & Aced

This professional malpractice action arises from erroneous income tax advice allegedly given by defendant accountants. Relying on the advice, the plaintiffs made a charitable contribution. When their income tax returns for the period were prepared and filed, they learned the advice was incorrect and they incurred taxes greater than expected. The trial court granted summary judgment for the defendants, concluding that the plaintiffs both discovered the negligence and suffered actual injury when they filed the tax return and paid their taxes. Because that occurred more than two years before they filed their complaint, the action was time-barred by Code of Civil Procedure section 339, subdivision l. We will agree with the trial court and affirm. The “bright line” rule adopted by the Supreme Court in International Engine Parts, Inc. v. Feddersen & Co. (1995) 9 Cal.4th 606 [ 38 Cal.Rptr.2d 150 , 888 P.2d 1279 ] (Feddersen), for cases based on negligent preparation of returns, does not apply here.

Facts and Procedural History

According to the allegations of the first amended complaint, Dunker and Aced, an accountancy corporation, and Galen Gray, an accountant, (collectively…