Florida Senate - 2013 SB 286 By Senator Negron 32-00134C-13 2013286__ 1 A bill to be entitled 2 An act relating to design professionals; amending s. 3 558.002, F.S.; providing and renumbering definitions; 4 creating s. 558.0035, F.S.; providing that certain 5 contracts executed by a business entity may specify 6 that certain architects, interior designers, landscape 7 architects, engineers, and surveyors may not be held 8 individually liable for negligence in the performance 9 of professional services provided under those 10 contracts; specifying that a contract that prohibits 11 individual liability must meet certain requirements; 12 amending ss. 471.023, 472.021, 481.219, and 481.319, 13 F.S.; conforming provisions to changes made by the 14 act; providing an effective date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Present subsections (3) through (11) of section 19 558.002, Florida Statutes, are renumbered as subsections (4) 20 through (12), respectively, and new subsection (3) is added to 21 that section, to read: 22 558.002 Definitions.—As used in this chapter, the term: 23 (3) “Business entity” means any corporation, limited 24 liability company, partnership, limited partnership, 25 proprietorship, firm, enterprise, franchise, association, self 26 employed individual, or trust, whether fictitiously named or 27 not, doing business in this state. 28 Section 2. Section 558.0035, Florida Statutes, is created 29 to read: 30 558.0035 Contractual limitation on liability.—A contract 31 executed by a business entity may provide that an individual 32 employee or agent of that business entity may not be held 33 individually liable for negligence arising from the performance 34 of professional services under the contract, on condition that 35 the following requirements are met: 36 (1) The business entity executes the contract with a 37 claimant or with another entity for the provision of 38 professional services on behalf of the claimant; 39 (2) The contract includes a prominent statement, in 40 uppercase font that is at least 5 point sizes larger than the 41 rest of the text, that, pursuant to this act, an individual 42 employee or agent may not be held individually liable for 43 negligence; 44 (3) The contract does not name an individual employee or 45 agent as a party to the contract; 46 (4) The business entity maintains professional liability 47 insurance required under the contract; 48 (5) The conduct of the design professional giving rise to 49 the damages occurs within the course and scope of the contract; 50 and 51 (6) The harm is solely economic in nature and does not 52 extend to persons or property not subject to the contract. 53 Section 3. Subsection (3) of section 471.023, Florida 54 Statutes, is amended to read: 55 471.023 Certification of business organizations.— 56 (3) Except as provided in s. 558.0035, the fact that a 57 licensed engineer practices through a business organization does 58 not relieve the licensee from personal liability for negligence, 59 misconduct, or wrongful acts committed by him or her. 60 Partnerships and all partners shall be jointly and severally 61 liable for the negligence, misconduct, or wrongful acts 62 committed by their agents, employees, or partners while acting 63 in a professional capacity. Any officer, agent, or employee of a 64 business organization other than a partnership shall be 65 personally liable and accountable only for negligent acts, 66 wrongful acts, or misconduct committed by him or her or 67 committed by any person under his or her direct supervision and 68 control, while rendering professional services on behalf of the 69 business organization. The personal liability of a shareholder 70 or owner of a business organization, in his or her capacity as 71 shareholder or owner, shall be no greater than that of a 72 shareholder-employee of a corporation incorporated under chapter 73 607. The business organization shall be liable up to the full 74 value of its property for any negligent acts, wrongful acts, or 75 misconduct committed by any of its officers, agents, or 76 employees while they are engaged on its behalf in the rendering 77 of professional services. 78 Section 4. Subsection (3) of section 472.021, Florida 79 Statutes, is amended to read: 80 472.021 Certification of partnerships and corporations.— 81 (3) Except as provided in s. 558.0035, the fact that any 82 registered surveyor and mapper practices through a corporation 83 or partnership doesshallnot relieve the registrant from 84 personal liability for negligence, misconduct, or wrongful acts 85 committed by him or her. Partnerships and all partners shall be 86 jointly and severally liable for the negligence, misconduct, or 87 wrongful acts committed by their agents, employees, or partners 88 while acting in a professional capacity. AnAnyofficer, agent, 89 or employee of a business organization other than a partnership 90 shall be personally liable and accountable only for negligent 91 acts, wrongful acts, or misconduct committed by him or her or 92 committed by aanyperson under his or her direct supervision 93 and control while rendering professional services on behalf of 94 the business organization. The personal liability of a 95 shareholder or owner of a business organization, in his or her 96 capacity as shareholder or owner, shall be no greater than that 97 of a shareholder-employee of a corporation incorporated under 98 chapter 607. The business organization shall be liable up to the 99 full value of its property for any negligent acts, wrongful 100 acts, or misconduct committed by any of its officers, agents, or 101 employees while they are engaged on its behalf in the rendering 102 of professional services. 103 Section 5. Subsection (11) of section 481.219, Florida 104 Statutes, is amended to read: 105 481.219 Certification of partnerships, limited liability 106 companies, and corporations.— 107 (11) No corporation, limited liability company, or 108 partnership shall be relieved of responsibility for the conduct 109 or acts of its agents, employees, or officers by reason of its 110 compliance with this section. However, except as provided in s. 111 558.0035, the architect who signs and seals the construction 112 documents and instruments of service shall be liable for the 113 professional services performed, and the interior designer who 114 signs and seals the interior design drawings, plans, or 115 specifications shall be liable for the professional services 116 performed. 117 Section 6. Subsection (6) of section 481.319, Florida 118 Statutes, is amended to read: 119 481.319 Corporate and partnership practice of landscape 120 architecture; certificate of authorization.— 121 (6) Except as provided in s. 558.0035, the fact that a 122 registered landscape architect practicesarchitectspractice123 landscape architecture through a corporation or partnership as 124 provided in this section doesshallnot relieve theany125 landscape architect from personal liability for his or her 126 professional acts. 127 Section 7. This act shall take effect July 1, 2013.