Senate Bill 0236c1

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    Florida Senate - 1999        (Corrected Copy)    CS for SB 236

    By the Committee on Judiciary and Senator Latvala





    308-1639A-99

  1                      A bill to be entitled

  2         An act relating to insurance; amending s.

  3         324.021, F.S.; providing a limitation on the

  4         liability for bodily injury, property, and

  5         economic damages for certain lessors and owners

  6         of motor vehicles; providing for applicability;

  7         amending s. 95.031; providing a statute of

  8         repose of 18 years; providing for severability;

  9         providing an effective date.

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11  Be It Enacted by the Legislature of the State of Florida:

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13         Section 1.  Paragraph (b) of subsection (9) of section

14  324.021, Florida Statutes, is amended, and paragraph (c) is

15  added to that subsection, to read:

16         324.021  Definitions; minimum insurance required.--The

17  following words and phrases when used in this chapter shall,

18  for the purpose of this chapter, have the meanings

19  respectively ascribed to them in this section, except in those

20  instances where the context clearly indicates a different

21  meaning:

22         (9)  OWNER; OWNER/LESSOR.--

23         (b)  Owner/lessor.--Notwithstanding any other provision

24  of the Florida Statutes or existing case law:,

25         1.  The lessor, under an agreement to lease a motor

26  vehicle for 1 year or longer which requires the lessee to

27  obtain insurance acceptable to the lessor which contains

28  limits not less than $100,000/$300,000 bodily injury liability

29  and $50,000 property damage liability or not less than

30  $500,000 combined property damage liability and bodily injury

31  liability, shall not be deemed the owner of said motor vehicle

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    Florida Senate - 1999        (Corrected Copy)    CS for SB 236
    308-1639A-99




  1  for the purpose of determining financial responsibility for

  2  the operation of said motor vehicle or for the acts of the

  3  operator in connection therewith; further, this subparagraph

  4  paragraph shall be applicable so long as the insurance meeting

  5  these requirements is in effect.  The insurance meeting such

  6  requirements may be obtained by the lessor or lessee,

  7  provided, if such insurance is obtained by the lessor, the

  8  combined coverage for bodily injury liability and property

  9  damage liability shall contain limits of not less than $1

10  million and may be provided by a lessor's blanket policy.

11         2.  The lessor, under an agreement to rent or lease a

12  motor vehicle for a period of less than 1 year, shall be

13  deemed the owner of the motor vehicle for the purpose of

14  determining liability for the operation of the vehicle or the

15  acts of the operator in connection therewith only up to

16  $100,000 per person and up to $300,000 per incident for bodily

17  injury and up to $50,000 for property damage. If the lessee or

18  the operator of the motor vehicle is uninsured or has any

19  insurance with limits less than $500,000 combined property

20  damage and bodily injury liability, the lessor shall be liable

21  for up to an additional $500,000 in economic damages only

22  arising out of the use of the motor vehicle.  The additional

23  specified liability of the lessor for economic damages shall

24  be reduced by amounts actually recovered from the lessee, from

25  the operator, and from any insurance or self insurance

26  covering the lessee or operator.  Nothing in this subparagraph

27  shall be construed to affect the liability of the lessor for

28  its own negligence.

29         3.  The owner who is a natural person and loans a motor

30  vehicle to any permissive user other than a relative residing

31  in the same household as defined in s. 627.732(4) shall be

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    Florida Senate - 1999        (Corrected Copy)    CS for SB 236
    308-1639A-99




  1  liable for the operation of the vehicle or the acts of the

  2  operator in connection therewith only up to $100,000 per

  3  person and up to $300,000 per incident for bodily injury and

  4  up to $50,000 for property damage. If the permissive user of

  5  the motor vehicle is uninsured or has any insurance with

  6  limits less than $500,000 combined property damage and bodily

  7  injury liability, the owner shall be liable for up to an

  8  additional $500,000 in economic damages only arising out of

  9  the use of the motor vehicle. The additional specified

10  liability of the owner for economic damages shall be reduced

11  by amounts actually recovered from the permissive user and

12  from any insurance or self-insurance covering the permissive

13  user. Nothing in this subparagraph shall be construed to

14  affect the liability of the owner for his or her own

15  negligence.

16         (c)  Application.--The limits on liability in

17  subparagraphs (b)2. and 3. do not apply to an owner of motor

18  vehicles that are used for commercial activity in the owner's

19  ordinary course of business, other than a rental company that

20  rents or leases motor vehicles. For purposes of this

21  paragraph, the term "rental company" includes only an entity

22  that is engaged in the business of renting or leasing motor

23  vehicles to the general public and that rents or leases a

24  majority of its motor vehicles to persons with no direct or

25  indirect affiliation with the rental company. The term also

26  includes a motor vehicle dealer that provides temporary

27  replacement vehicles to its customers for up to 10 days.

28  Furthermore, the limits on liability in subparagraphs (b)2.

29  and 3. do not apply to a motor vehicle that has a gross

30  vehicle weight of greater than 26,000 pounds.

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  1         Section 2.  Subsection (2) of section 95.031, Florida

  2  Statutes, is amended to read:

  3         95.031  Computation of time.--Except as provided in

  4  subsection (2) and in s. 95.051 and elsewhere in these

  5  statutes, the time within which an action shall be begun under

  6  any statute of limitations runs from the time the cause of

  7  action accrues.

  8         (2)(a)  An action Actions for products liability and

  9  fraud under s. 95.11(3) must be begun within the period

10  prescribed in this chapter, with the period running from the

11  time the facts giving rise to the cause of action were

12  discovered or should have been discovered with the exercise of

13  due diligence, instead of running from any date prescribed

14  elsewhere in s. 95.11(3), but in any event an action for fraud

15  under s. 95.11(3) must be begun within 12 years after the date

16  of the commission of the alleged fraud, regardless of the date

17  the fraud was or should have been discovered.

18         (b)  An action for products liability under s. 95.11(3)

19  must be begun within the period prescribed in this chapter,

20  with the period running from the date that the facts giving

21  rise to the cause of action were discovered, or should have

22  been discovered with the exercise of due diligence, rather

23  than running from any other date prescribed elsewhere in s.

24  95.11(3), but in no event may an action for products liability

25  under s. 95.11(3) be commenced unless the complaint is served

26  and filed within 18 years after the date of delivery of the

27  product to its first purchaser or lessee who was not engaged

28  in the business of selling or leasing the product or of using

29  the product as a component in the manufacture of another

30  product, regardless of the date that the defect in the product

31  was or should have been discovered. However, the 18-year

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    Florida Senate - 1999        (Corrected Copy)    CS for SB 236
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  1  limitation on filing an action for products liability does not

  2  apply if the manufacturer knew of a defect in the product and

  3  concealed or attempted to conceal this defect. In addition,

  4  the 18-year limitation does not apply if the claimant was

  5  exposed to or used the product within the 18-year period, but

  6  an injury caused by such exposure or use did not manifest

  7  itself until after the 18-year period.

  8         Section 3.  Any action for products liability which

  9  would not have been barred under section 95.031(2), Florida

10  Statutes, prior to the amendments to that section made by this

11  act may be commenced before July 1, 2003, and, if it is not

12  commenced by that date and is barred by the amendments to

13  section 95.031(2), Florida Statutes, made by this act, it

14  shall be barred.

15         Section 4.  If any provision of this act or the

16  application thereof to any person or circumstance is held

17  invalid, the invalidity does not affect other provisions or

18  applications of the act which can be given effect without the

19  invalid provision or application, and to this end the

20  provisions of this act are declared severable.

21         Section 5.  This act shall take effect July 1, 1999.

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    Florida Senate - 1999        (Corrected Copy)    CS for SB 236
    308-1639A-99




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                              SB 236

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  4  Revises s. 324.021(9)(c), F.S., to exclude motor vehicles with
    a gross vehicle weight greater than 26,000 pounds from the
  5  limits on vicarious liability.

  6  Amends s. 95.031, F.S. to include a statute of repose for
    products liability actions. Actions based on products
  7  liability must be brought within 18 years from the date of
    delivery of the completed product to the original purchaser or
  8  lessee, regardless of the date on which the defect in the
    product was or should have been discovered. The statute of
  9  repose would not apply when the claimant's injury did not
    manifest itself until after the 18 year period expired. The
10  statute also would not apply if the manufacturer knew of a
    defect and concealed, or attempted to conceal, the defect. The
11  statute contains a savings clause allowing products liability
    actions that would not have otherwise been barred to be
12  brought before July 1, 2003.

13  Adds a severability clause.

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