Florida Senate - 2013 CS for SB 286 By the Committee on Judiciary; and Senator Negron 590-01977-13 2013286c1 1 A bill to be entitled 2 An act relating to design professionals; amending s. 3 558.002, F.S.; redefining the term “design 4 professional”; creating s. 558.0035, F.S.; specifying 5 conditions under which a design professional employed 6 by a business entity or an agent of the business 7 entity may not be held individually liable for damages 8 resulting from negligence occurring within the course 9 and scope of a professional services contract; 10 defining the term “business entity”; amending ss. 11 471.023, 472.021, 481.219, 481.319, and 492.111, F.S.; 12 conforming provisions to changes made by the act; 13 providing an effective date. 14 15 Be It Enacted by the Legislature of the State of Florida: 16 17 Section 1. Subsection (7) of section 558.002, Florida 18 Statutes, is amended to read: 19 558.002 Definitions.—As used in this chapter, the term: 20 (7) “Design professional” means a person, as defined in s. 21 1.01, licensed in this state as an architect, interior designer, 22 landscape architect, engineer,orsurveyor, or geologist. 23 Section 2. Section 558.0035, Florida Statutes, is created 24 to read: 25 558.0035 Design professionals; contractual limitation on 26 liability.— 27 (1) A design professional employed by a business entity or 28 an agent of the business entity is not individually liable for 29 damages resulting from negligence occurring within the course 30 and scope of a professional services contract if: 31 (a) The contract is made between the business entity and a 32 claimant or with another entity for the provision of 33 professional services to the claimant; 34 (b) The contract does not name as a party to the contract 35 the individual employee or agent who will perform the 36 professional services; 37 (c) The contract includes a prominent statement, in 38 uppercase font that is at least 5 point sizes larger than the 39 rest of the text, that, pursuant to this section, an individual 40 employee or agent may not be held individually liable for 41 negligence; 42 (d) The business entity maintains any professional 43 liability insurance required under the contract; and 44 (e) Any damages are solely economic in nature and the 45 damages do not extend to personal injuries or property not 46 subject to the contract. 47 (2) As used in this section, the term “business entity” 48 means any corporation, limited liability company, partnership, 49 limited partnership, proprietorship, firm, enterprise, 50 franchise, association, self-employed individual, or trust, 51 whether fictitiously named or not, doing business in this state. 52 Section 3. Subsection (3) of section 471.023, Florida 53 Statutes, is amended to read: 54 471.023 Certification of business organizations.— 55 (3) Except as provided in s. 558.0035, the fact that a 56 licensed engineer practices through a business organization does 57 not relieve the licensee from personal liability for negligence, 58 misconduct, or wrongful acts committed by him or her. 59 Partnerships and all partners shall be jointly and severally 60 liable for the negligence, misconduct, or wrongful acts 61 committed by their agents, employees, or partners while acting 62 in a professional capacity. Any officer, agent, or employee of a 63 business organization other than a partnership shall be 64 personally liable and accountable only for negligent acts, 65 wrongful acts, or misconduct committed by him or her or 66 committed by any person under his or her direct supervision and 67 control, while rendering professional services on behalf of the 68 business organization. The personal liability of a shareholder 69 or owner of a business organization, in his or her capacity as 70 shareholder or owner, shall be no greater than that of a 71 shareholder-employee of a corporation incorporated under chapter 72 607. The business organization shall be liable up to the full 73 value of its property for any negligent acts, wrongful acts, or 74 misconduct committed by any of its officers, agents, or 75 employees while they are engaged on its behalf in the rendering 76 of professional services. 77 Section 4. Subsection (3) of section 472.021, Florida 78 Statutes, is amended to read: 79 472.021 Certification of partnerships and corporations.— 80 (3) Except as provided in s. 558.0035, the fact that any 81 registered surveyor and mapper practices through a corporation 82 or partnership doesshallnot relieve the registrant from 83 personal liability for negligence, misconduct, or wrongful acts 84 committed by him or her. Partnerships and all partners shall be 85 jointly and severally liable for the negligence, misconduct, or 86 wrongful acts committed by their agents, employees, or partners 87 while acting in a professional capacity. AnAnyofficer, agent, 88 or employee of a business organization other than a partnership 89 shall be personally liable and accountable only for negligent 90 acts, wrongful acts, or misconduct committed by him or her or 91 committed by aanyperson under his or her direct supervision 92 and control while rendering professional services on behalf of 93 the business organization. The personal liability of a 94 shareholder or owner of a business organization, in his or her 95 capacity as shareholder or owner, shall be no greater than that 96 of a shareholder-employee of a corporation incorporated under 97 chapter 607. The business organization shall be liable up to the 98 full value of its property for any negligent acts, wrongful 99 acts, or misconduct committed by any of its officers, agents, or 100 employees while they are engaged on its behalf in the rendering 101 of professional services. 102 Section 5. Subsection (11) of section 481.219, Florida 103 Statutes, is amended to read: 104 481.219 Certification of partnerships, limited liability 105 companies, and corporations.— 106 (11) No corporation, limited liability company, or 107 partnership shall be relieved of responsibility for the conduct 108 or acts of its agents, employees, or officers by reason of its 109 compliance with this section. However, except as provided in s. 110 558.0035, the architect who signs and seals the construction 111 documents and instruments of service shall be liable for the 112 professional services performed, and the interior designer who 113 signs and seals the interior design drawings, plans, or 114 specifications shall be liable for the professional services 115 performed. 116 Section 6. Subsection (6) of section 481.319, Florida 117 Statutes, is amended to read: 118 481.319 Corporate and partnership practice of landscape 119 architecture; certificate of authorization.— 120 (6) Except as provided in s. 558.0035, the fact that a 121 registered landscape architect practicesarchitectspractice122 landscape architecture through a corporation or partnership as 123 provided in this section doesshallnot relieve theany124 landscape architect from personal liability for his or her 125 professional acts. 126 Section 7. Subsection (4) of section 492.111, Florida 127 Statutes, is amended to read: 128 492.111 Practice of professional geology by a firm, 129 corporation, or partnership; certificate of authorization.—The 130 practice of, or offer to practice, professional geology by 131 individual professional geologists licensed under the provisions 132 of this chapter through a firm, corporation, or partnership 133 offering geological services to the public through individually 134 licensed professional geologists as agents, employees, officers, 135 or partners thereof is permitted subject to the provisions of 136 this chapter, provided that: 137 (4) Except as provided in s. 558.0035, the fact that a 138 licensed professional geologist practices through a corporation 139 or partnership doesshallnot relieve the registrant from 140 personal liability for negligence, misconduct, or wrongful acts 141 committed by her or him. The partnership and all partners are 142shall bejointly and severally liable for the negligence, 143 misconduct, or wrongful acts committed by their agents, 144 employees, or partners while acting in a professional capacity. 145 Any officer, agent, or employee of a corporation isshall be146 personally liable and accountable only for negligent acts, 147 wrongful acts, or misconduct committed by her or him or 148 committed by any person under her or his direct supervision and 149 control, while rendering professional services on behalf of the 150 corporation. The personal liability of a shareholder of a 151 corporation, in her or his capacity as shareholder, mayshallbe 152 no greater than that of a shareholder-employee of a corporation 153 incorporated under chapter 607. The corporation isshall be154 liable up to the full value of its property for any negligent 155 acts, wrongful acts, or misconduct committed by any of its 156 officers, agents, or employees while they are engaged on behalf 157 of the corporation in the rendering of professional services. 158 Section 8. This act shall take effect July 1, 2013.