I S S U E 2 , 2 0 2 2 10 nebraska cpas S TAT E B O A R D R E P O R T It is never a good time to hear you and/or your firm are the subject of civil l itigation af ter providing professional services to clients; however, you should understand what you need to do should you find yourself in this undesirable situation. The first course of action is to notify your insurance carrier and/or attorney to assist you in addressing the matter. You also must eventually notify the Nebraska Board of Public Accountancy (State Board) on your annual and/or f irm renewals. I f complet ing on l ine renewa l s, you will be directed to provide a written summary and any current BY DAN SWEETWOOD, NEBRASKA BOARD OF PUBLIC ACCOUNTANCY FAQS FOR NEBRASKA CPAS: THE ROLE OF THE STATE BOARD IN CIVIL LITIGATION pleadings in the matter to the State Board office. Why is the State Board interested in your civil suit? Below are several frequently asked questions to assist you and/or your firm in understanding the State Board’s position when it comes to civil litigation. Questions & Answers Q: I have been named in a civil lawsuit by a former client regarding my profess iona l prac t ice and am working with my attorney on the matter. What are my obligations to the State Board? A: First, make sure you properly comp l e t e you r nex t r e newa l appl icat ion for your permit to practice. One of the application questions will ask if you and/ or your firm has been named in a civil lawsuit since your last application. Make sure you check the box “yes” and provide a summary explanation of the matter. This could include the status of the lawsuit, where the l it igat ion was f i led, any pleadings filed with the court, and other pertinent information. Q: Why is the State Board involved in civil litigation? A: The State Board’s main responsibi l it y i s to ensure regulations within the Rules of Professional Conduct (found within the Nebraska Adm i n i s t r a t i ve Cod e (NAC) Title 288, Chapter 5) have not been violated in the matter. In the vast majority of cases the State Board will remain an interested third party and will offer you and/or the firm a Litigation Monitoring Consent Order (LMCO) so the State Board can move to the sidelines and let you and your attorney focus on the litigation. You will also receive a telephone call from State Board staff overviewing any initial comments from the Board’s Enforcement Committee (EC) and to answer any questions regarding the LMCO or other concerns. Q: I have agreed to settle the matter through my attorney. What now? A: Normal ly, the EC wi l l request the settlement for review. Under State Board regulat ions, the set t lement remains confidential during the investigation. The settlement is reviewed by the State Board’s attorney and the EC to determine if any further information will be required from you and/or the firm. This might include any actions you and/or the firm has taken since the settlement to defer future problems. Q: The court dismissed the matter for lack of evidence or ruled in my and/or the firm’s favor. What now? A: In most cases, the State Board will then close the matter. Q: The court and/or jury ruled in favor of the plaintiff. What now? A: As agreed within the LMCO, it is your and/or the firm’s responsibility to keep the State Board office apprised of the actions of the court. Telephone or email the State Board office with the results of the matter. Normally, the pleadings in the case will be reviewed by the State Board’s attorney and the EC to determine if any further actions should be taken. This could include
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