Question
Accounting firm with access to client's bank account is sued for embezzlement of funds. Client sues accounting firm and client settle case with a payment
Accounting firm with access to client's bank account is sued for embezzlement of funds. Client sues accounting firm and client settle case with a payment by the accounting firm to the client of $100,000. In the release , there is a covenant not to sue that states:
"Client agrees not to institute a legal action of any kind with respect to an officer, director or employee of accounting firm."
As consideration for accepting the accounting firm's offer to settle, the client agrees not to sue any individual associated with the accounting firm on the same embezzlement issue.
What happens if this was not part of the settlement agreement?
and basically Why this type of provision is important to the accounting firm?
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