SENATE BILL No. 783

 

 

October 27, 2011, Introduced by Senators SCHUITMAKER and JONES 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

 

professional malpractice against a certified public accountant. A

 

Subject to subsection (2), a certified public accountant is liable

 

for civil damages in connection with public accounting services

 

performed by the certified public accountant only in 1 of the

 

following situations:

 

     (a) A negligent act, omission, decision, or other conduct of

 

the certified public accountant if the claimant is the certified

 

public accountant's client.

 

     (b) 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 directly by the client at the time before

 

commencement of the 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

 

also separately identify in writing directly to the client, before

 

commencement of the engagement, 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) A certified public accountant is not liable for civil

 

damages in any of the following situations:

 

     (a) The claimant is not the certified public accountant's

 

client, but asserts standing to sue based on an assignment of the

 

claim from the client to the claimant.

 

     (b) The claimant is not the certified public accountant's

 

client, but asserts standing to sue based on a voluntary surrender

 

of assets or acquisition of the claim by means of foreclosure or

 

surrender under any type of security agreement between the claimant

 

and the client.


 

     (c) The claimant is not the certified public accountant's

 

client, but asserts standing to sue based on a writing referred to

 

in subsection (1)(c) that was not signed by the client himself or

 

herself, if an individual, or that was not signed by an officer,

 

manager, or member of the client, if an entity.