Legal Question in Business Law in California

As an accountant, if a customer quits using my services, do I have to give them their data file that I created? Does it belong to them, or to me? Can they sue me for it?


Asked on 6/04/10, 1:16 am

3 Answers from Attorneys

Kevin B. Murphy Franchise Foundations, APC

An attorney will tell you the client data belongs to the client, and they have a right to it. The could bring a lawsuit for the return of this data. Consult with an attorney in your area for specifics.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 6/04/10, 5:56 am
Jonathan Reich De Castro, West, Chodorow, Glickfeld & Nass, Inc.

Any original documents given to you by your client clearly belong to him and must be returned. Your work papers are a more difficult question. Practically speaking, if you don't release the file your client is likely file administrative complaints and/or sue you, all of which will take time and money to resolve. The real question is why you want to keep the file in the first place. It would seem that it is of no use to you. Is there some specific reason to be concerned? While you may want to keep a copy (which I would do if it were me), the only conclusion that will jump to the mind of an outsider is that either you have something to hide, i.e. you did something wrong and want to cover it up, or you are just doing this out of spite.

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Answered on 6/04/10, 8:44 am

Check with the California Board of Accountancy -- State Bar rules require lawyers in California to return client files, but it may be different for accountants (and is different for lawyers in other states, so you never know).

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Answered on 6/04/10, 9:25 am


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