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Court revises opinion on fiduciary duties.

In a case reported in the March Legal Scene (page 21), a Texas appellate court revised its ruling that the statute of limitations stopped running when a fiduciary relationship exists between a CPA and client.

While the court earlier ruled there is a fiduciary relationship between a CPA and client, its revised ruling said there can be a fiduciary relationship.

Although the change is subtle, it's significant the court will not assume a fiduciary relationship exists between a CPA and a client; rather, the court will look at the facts of the case to determine if there is, indeed, a fiduciary relationship. (Woodbine Electric Service, Inc. v. William E. McReynolds, 11th Circuit Court of Appeals, no. 11-91-230-CV, issued July 16, 1992, revised August 27, 1992)
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Publication:Journal of Accountancy
Date:Aug 1, 1993
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