International Engine Parts, Inc. v. Feddersen & Co.

Opinion

LUCAS, C. J.

We granted review to resolve a narrow, but recurring, issue as to when actual injury, caused by an accountant’s negligent filing of tax returns, occurs so as to commence the running of the two-year statute of limitations period of Code of Civil Procedure section 339, subdivision 1 (hereafter section 339, subdivision 1). A cause of action for accountant malpractice under section 339, subdivision 1, specifically accrues “on discovery of the loss or damage suffered by the aggrieved party,” but until the client suffers damage or actual injury from the negligence, a cause of…