<html><body><div style="color:#000; background-color:#fff; font-family:Courier New, courier, monaco, monospace, sans-serif;font-size:10pt"><div style="RIGHT: auto"><SPAN style="RIGHT: auto">While not entirely on point, but at least in the vein of "but wait, if that's true, then . . . ? ", I would suggest that we all take a moment to ponder the ramifications of these very recent legislative pronouncements in light of the obiter dictum from the Florida Supreme Court in <U>Moransais</U>: <FONT face="Courier New, courier, monaco, monospace, sans-serif">"</FONT><FONT style="RIGHT: auto"><FONT style="RIGHT: auto" face="Courier New, courier, monaco, monospace, sans-serif">Indeed, it is questionable whether a professional, such as a lawyer, could legally or ethically limit a client's remedies by contract in the same way that a manufacturer could do with a purchaser in a purely commercial setting." Obviously, the important part of that statement is
"ethically". I would, at least at this point, suggest caution in advising a client what these recent pronouncements truly mean, . . . <VAR id=yui-ie-cursor></VAR>at least until "the paint fully dries". Just a thought.</FONT></FONT></SPAN></div>
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<div style="RIGHT: auto" class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d; RIGHT: auto">Good questions, Bruce. Here is my two cents at this early stage.</SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d"> </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d">558.0035(1)(a) provides: “The contract includes a prominent statement … that … an individual <I>employee</I> or <I>agent</I> may not be held individually liable for negligence.” You singled out a partnership, limited partnership or proprietorship. However, each of those entities could employ a professional that would meet the exemption definition. It would be those employees and agents of the partnership that would be exempt from personal liability. I agree that the partners or proprietor of the company would not escape liability, but the liability would be indirect, through the lack of any liability shield provided by these forms of business entities, rather than direct from the partners status as a professional. </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d"> </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d">Thus, while John Smith might be an Architect/Partner in Design Partnership and his work might be the target of a lawsuit for economic damages, he would not be a named party even though he may be liable for the judgment debt of the partnership. Through the same theory, he would be liable for the errors and omissions committed by his professional employee, John Doe, even though Mr. Smith did not perform the work as well. </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d"> </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d">The changes that were not made support this interpretation. For instance, section 471.023(3) still provides that “Partnerships and all partners shall be jointly and severally liable for the negligence, misconduct, or wrongful acts committed by their <I>agents</I>, <I>employees</I>, or <I>partners</I> while acting in a professional capacity.” It would appear that the corresponding sections to 471.023 in chapters 472, 481 and 492 would all require modification if the legislature were attempting to eliminate design professional liability for purely economic damages.</SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d"> </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d">I agree that the inclusion of a sole proprietor in 558.035(2) is confusing at best. </SPAN></div>
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<div class=yiv74011538MsoNormal><B><SPAN style="FONT-FAMILY: 'Arial', 'sans-serif'; COLOR: #7f7f7f; FONT-SIZE: 9pt">Gene</SPAN></B><SPAN style="FONT-FAMILY: 'Times New Roman', 'serif'; COLOR: #1f497d; FONT-SIZE: 12pt"> </SPAN><B><SPAN style="FONT-FAMILY: 'Arial', 'sans-serif'; COLOR: #7f7f7f; FONT-SIZE: 9pt">Atwood</SPAN></B><SPAN style="FONT-FAMILY: 'Arial', 'sans-serif'; COLOR: #7f7f7f; FONT-SIZE: 10pt"> | </SPAN><SPAN style="FONT-FAMILY: 'Arial', 'sans-serif'; COLOR: #7f7f7f; FONT-SIZE: 9pt">Shareholder</SPAN><SPAN style="FONT-FAMILY: 'Arial', 'sans-serif'; COLOR: #7f7f7f; FONT-SIZE: 7.5pt"> </SPAN><SPAN style="FONT-FAMILY: 'Times New Roman', 'serif'; COLOR: #1f497d; FONT-SIZE: 12pt"></SPAN></div>
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<div class=yiv74011538MsoNormal><B><SPAN style="FONT-FAMILY: 'Tahoma', 'sans-serif'; FONT-SIZE: 10pt">From:</SPAN></B><SPAN style="FONT-FAMILY: 'Tahoma', 'sans-serif'; FONT-SIZE: 10pt"> clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org] <B>On Behalf Of </B>Bruce Partington<BR><B>Sent:</B> Friday, April 26, 2013 1:14 PM<BR><B>To:</B> Roberts, Hardy L.; Construction Law Discussion<BR><B>Subject:</B> Re: [CLC-Discussion] SB 286 - Limitations on Individual DesignProfessional Liability</SPAN></div></DIV></DIV>
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<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d">Since we’ve all been thoroughly studying this for the last 25 hours (and busily forwarding it to all our design professional clients and those who contract with them), it seems to me that there is a conflict or ambiguity within the bill (or at least one).</SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d"> </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d">On the one hand, it seeks to limit the individual responsibility of licensees who are acting as the agent or employee of a “business entity” -- but then includes within the definition of “business entity” both traditional liability limiting entities, but also “partnership, limited partnership, proprietorship, . . . .[and] self-employed individual.” It seems to me that the statute can’t do much good in those instances due to the inherent liability under those other forms. In other words, a sole proprietor who would be personally liable for ALL debts and obligations of the proprietorship would seem still to be liable since a proprietor does not employ himself or herself, and cannot be his/her own “agent.”</SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d"> </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d">Or, would the statute be construed to essentially eliminate claims for “solely economic” damages against design professionals? It’s not written that way, but that would seem the only alternative construction that would give some meaning or value to partnerships, sole proprietorships, and “self employed individual.” But, given that this elimination of economic damages claims would have to be <U>inferred</U> run afoul of the access to courts provision of the Florida Constitution (despite the staff analysis). </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d"> </SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d">I’d welcome the thoughts of others on this and any other issues on the bill.</SPAN></div>
<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d"> </SPAN></div>
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<div class=yiv74011538MsoNormal><B><SPAN style="COLOR: #0000a0; FONT-SIZE: 13.5pt">Bruce D. Partington</SPAN></B><SPAN style="COLOR: #1f497d"></SPAN></div>
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<div class=yiv74011538MsoNormal><SPAN style="COLOR: #1f497d; FONT-SIZE: 7.5pt">NOTICE: This e-mail message and any attachments are private communication sent by the law firm of Clark Partington Hart Larry Bond & Stackhouse, and may contain confidential, legally privileged information meant solely for the intended recipient. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. Please notify the sender immediately by replying to this message, and delete the e-mail and any attachments from your system. Thank you.</SPAN><SPAN style="COLOR: #1f497d"></SPAN></div></DIV>
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<div class=yiv74011538MsoNormal><B><SPAN style="FONT-FAMILY: 'Tahoma', 'sans-serif'; FONT-SIZE: 10pt">From:</SPAN></B><SPAN style="FONT-FAMILY: 'Tahoma', 'sans-serif'; FONT-SIZE: 10pt"> <A href="mailto:clc-discussion-bounces@lists.flabarrpptl.org" rel=nofollow target=_blank ymailto="mailto:clc-discussion-bounces@lists.flabarrpptl.org">clc-discussion-bounces@lists.flabarrpptl.org</A> [<A href="mailto:clc-discussion-bounces@lists.flabarrpptl.org" rel=nofollow target=_blank ymailto="mailto:clc-discussion-bounces@lists.flabarrpptl.org">mailto:clc-discussion-bounces@lists.flabarrpptl.org</A>] <B>On Behalf Of </B>Roberts, Hardy L.<BR><B>Sent:</B> Thursday, April 25, 2013 11:03 AM<BR><B>To:</B> 'Construction Law Discussion'<BR><B>Subject:</B> [CLC-Discussion] SB 286 - Limitations on Individual DesignProfessional Liability</SPAN></div></DIV></DIV>
<div class=yiv74011538MsoNormal> </div>
<div class=yiv74011538MsoNormal>CLC’ers,</div>
<div class=yiv74011538MsoNormal>For your information, I understand Governor Scott signed the attached bill into law yesterday.</div>
<div class=yiv74011538MsoNormal>Hardy</div>
<div class=yiv74011538MsoNormal> </div>
<div class=yiv74011538MsoNormal><B><SPAN style="FONT-FAMILY: 'Arial', 'sans-serif'; COLOR: black; FONT-SIZE: 10pt"><IMG id=yiv74011538_x0000_i1025 border=0 alt="Carlton Fields" width=190 height=53><BR>Hardy L. Roberts</SPAN></B><SPAN style="FONT-FAMILY: 'Arial', 'sans-serif'; COLOR: black; FONT-SIZE: 10pt"><BR>Attorney at Law / Board Certified in Construction Law by the Florida Bar<BR>4221 W. Boy Scout Blvd., Ste. 1000<BR>Tampa, Florida 33607-5780 <BR>Direct: 813.229.4105 | Fax: 813.229.4133<BR><BR><A href="mailto:hroberts@carltonfields.com" rel=nofollow target=_blank ymailto="mailto:hroberts@carltonfields.com">hroberts@carltonfields.com</A> | <A href="http://www.carltonfields.com/" rel=nofollow target=_blank>http://www.carltonfields.com/</A> <BR><A href="http://www.carltonfields.com/hroberts/" rel=nofollow target=_blank>bio</A> | <A
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