Kahn v. Deutsche Bank AG

This case presents question as to whether trial court properly dismissed plaintiffs-taxpayer’s claims for breach of fiduciary duty and negligent misrepresentation arising out of defendants’ alleged roles in generating tax shelters that IRS eventually found not to be allowable, where dismissal was based on finding that complaint was time-barred under applicable 5-year limitations period? Appellate Court, in reversing trial court finding that limitations period began at time plaintiff’s hired their tax attorney, who would have learned about applicable IRS notices concerning instant tax shelters, held that instant limitations period did not start until date taxpayers received notice of tax deficiency from IRS. In their petitions for leave to appeal, defendants claimed that Appellate Court picked wrong date to start limitations period, and that plaintiffs failed to state viable cause of action for either breach of fiduciary duty or negligent misrepresentation where relevant contract between parties contained waiver of reliance on any oral advice given by defendants, as well as disclaimer of fiduciary duty.