Senate Bill 0236e1

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    CS for SB 236                                  First Engrossed



  1                      A bill to be entitled

  2         An act relating to civil actions; 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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    CS for SB 236                                  First Engrossed



  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 shall be liable for the

31  operation of the vehicle or the acts of the operator in


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    CS for SB 236                                  First Engrossed



  1  connection therewith only up to $100,000 per person and up to

  2  $300,000 per incident for bodily injury and up to $50,000 for

  3  property damage. If the permissive user of the motor vehicle

  4  is uninsured or has any insurance with limits less than

  5  $500,000 combined property damage and bodily injury liability,

  6  the owner shall be liable for up to an additional $500,000 in

  7  economic damages only arising out of the use of the motor

  8  vehicle. The additional specified liability of the owner for

  9  economic damages shall be reduced by amounts actually

10  recovered from the permissive user and from any insurance or

11  self-insurance covering the permissive user. Nothing in this

12  subparagraph shall be construed to affect the liability of the

13  owner for his or her own negligence.

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

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

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

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

18  rents or leases motor vehicles. For purposes of this

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

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

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

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

23  indirect affiliation with the rental company. The term also

24  includes a motor vehicle dealer that provides temporary

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

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

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

28  vehicle weight of greater than 26,000 pounds or any vehicle

29  designed to transport 16 or more passengers including the

30  driver. Furthermore, the limits on liability in subparagraphs

31  (b)2. and 3. do not apply to a motor vehicle that is used in


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    CS for SB 236                                  First Engrossed



  1  the transportation of materials found to be hazardous for the

  2  purposes of the Hazardous Materials Transportation Act, as

  3  amended (49 U.S.C. ss. 1801 et seq.), and that is required

  4  pursuant to such act to carry placards warning others of the

  5  hazardous cargo.

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

  7  Statutes, is amended to read:

  8         95.031  Computation of time.--Except as provided in

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

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

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

12  action accrues.

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

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

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

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

17  discovered or should have been discovered with the exercise of

18  due diligence, instead of running from any date prescribed

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

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

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

22  the fraud was or should have been discovered.

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

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

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

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

27  been discovered with the exercise of due diligence, rather

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

29  95.11(3), but in no event may an action for products liability

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

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


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    CS for SB 236                                  First Engrossed



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

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

  3  the product as a component in the manufacture of another

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

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

  6  limitation on filing an action for products liability does not

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

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

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

10  exposed to or used a product capable of causing a latent

11  disease and an injury caused by such exposure or use did not

12  manifest itself until after the 18-year period. The provisions

13  of this paragraph shall not apply to any aircraft which, at

14  the time of the accident, was engaged in scheduled

15  passenger-carrying operations.

16         Section 3.  Any action for products liability which

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

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

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

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

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

22  shall be barred.

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

24  application thereof to any person or circumstance is held

25  invalid, the invalidity does not affect other provisions or

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

27  invalid provision or application, and to this end the

28  provisions of this act are declared severable.

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

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