February 1, 2005, Introduced by Reps. Condino and Plakas and referred to the Committee on Judiciary.
A bill to amend 1961 PA 236, entitled
"Revised judicature act of 1961,"
by amending section 2962 (MCL 600.2962), as added by 1995 PA 249.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2962. (1) This section applies to an action for
negligence or professional malpractice against a certified public
accountant. A certified public accountant is liable for civil
damages in connection with public accounting services performed by
the
certified public accountant only in 1 or more of the
following situations:
(a)
A The liability arises
from a negligent act, omission,
decision,
or other conduct of the certified public accountant if
and the claimant is the 1 or more of the following:
(i) The certified public accountant's client.
(ii) A person for whose benefit and guidance the certified
public accountant's client intends to supply information prepared
or certified by the certified public accountant.
(iii) A person who relies on information supplied by the
certified public accountant in a specific transaction if the
certified public accountant intends the information to influence
the person or the certified public accountant knows the person
intends to rely on the information.
(iv) A person who the certified public accountant could
reasonably have foreseen would obtain and rely on information
prepared or certified by the certified public accountant.
(b)
An The liability arises
from an act, omission, decision,
or conduct of the certified public accountant that constitutes
fraud or an intentional misrepresentation.
(c)
A negligent act, omission, decision, or other conduct of
the
certified public accountant if the certified public accountant
was
informed in writing by the client at the time of engagement
that
a primary intent of the client was for the professional public
accounting
services to benefit or influence the person bringing the
action
for civil damages. For the purposes of this subdivision, the
certified
public accountant shall identify in writing to the client
each
person, generic group, or class description that the certified
public
accountant intends to have rely on the services. The
certified
public accountant may be held liable only to each
identified
person, generic group, or class description. The
certified
public accountant's written identification shall include
each
person, generic group, or class description identified by the
client
as being benefited or influenced.
(2) As used in this section:
(a) "Certified public accountant" means an individual who is
registered or licensed or a firm that is licensed under article 7
of the occupational code, 1980 PA 299, MCL 339.720 to 339.736.
(b) "Client" means the person directly engaging a certified
public accountant to perform a professional accounting service.
(c) "Person" means an individual, corporation, business trust,
estate, trust, partnership, limited liability company, limited
liability partnership, association, joint venture, or government; a
governmental subdivision, agency, or instrumentality; a public
corporation; or any other legal or commercial entity.
(d) "Professional accounting service" includes, but is not
limited to, the compilation, review, certification, or auditing of,
or the expression of a professional opinion or other reporting on,
a financial statement or other information covering a specified
period of time.
(e) "Specific transaction" means a particular transaction
between a client and a claimant.