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Ohio statute of limitation.


In a favorable ruling for Ohio accountants, the Ohio Supreme Court ruled the statute of limitations begins to run on the date of an alleged negligent occurrence, as opposed to the date of its discovery.

Coopers & Lybrand prepared annual audits for two real estate investment trusts, Investors REIT One (IRO) and Investors REIT Two (IRT). In 1980, IRO and IRT filed suit against the trustees, attorneys and accountants for the trusts. Against the accountants, the plaintiffs alleged both negligence and fraud in preparing the financial statements. The trial court dismissed all complaints. The court of appeals reinstated the fraud claim.

The supreme court ruled negligence claims were governed by a four-year statute of limitations that began on the date of the alleged negligence.

Since the claims of negligence regarded work performed between 1969 and 1975, and the suit was not filed until 1980, these claims were barred by the statute of limitations.

As for the fraud claims, the statute of limitations began to run on the date the alleged fraud was discovered, so they were not barred by the statute. (Investors REIT One v. Jacobs, 546 N.E. 2d 206)
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Author:Baliga, Wayne J.
Publication:Journal of Accountancy
Date:Apr 1, 1990
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