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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to construction defect claims; 2
amending s. 95.11, F.S.; revising the time period to 3
bring certain actions; providing definitions; amending 4
ss. 471.023, 472.021, 481.219, 481.319, and 492.111, 5
F.S.; conforming cross -references; repealing chapter 6
558, F.S., relating to construction defects; creating 7
s. 768.401, F.S.; providing definitions; providing 8
that certain design professionals are not individ ually 9
liable for certain damages under certain 10
circumstances; providing applicability; providing an 11
effective date. 12
13
Be It Enacted by the Legislature of the State of Florida: 14
15
Section 1. Paragraph (c) of subsection (3) of section 16
95.11, Florida Statutes, is amended to read: 17
95.11 Limitations other than for the recovery of real 18
property.—Actions other than for recovery of real property shall 19
be commenced as follows: 20
(3) WITHIN FOUR YEARS. — 21
(c) An action founded on the design, planning, or 22
construction of an improvement to real property, with the time 23
running from the date of actual possession by the owner , the 24
date of the issuance of a certificate of occupancy, the date of 25
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abandonment of construction if not completed, or the date of 26
completion of the contract or termination of the contract 27
between the professional engineer, registered architect, or 28
licensed contractor and his or her employer, whichever date is 29
latest,; except as provided in subparagraphs 1. -6. that, 30
1. When the action involves a latent defect, the time runs 31
from the time the defect is discovered or should have been 32
discovered with the exercise of due diligence. In any event, the 33
action must be commenced within 7 10 years after the date of 34
actual possession by the owner , the date of the issuance of a 35
certificate of occupancy, the date of abandonment of 36
construction if not completed, or the date of completion of the 37
contract or termination of the contract between the professional 38
engineer, registered architect, or licensed contract or and his 39
or her employer, whichever date is latest. 40
2. If the action alleges a latent defect of a common area 41
that is subject to a homeowners' association or condominium 42
association, then the action must be commenced within 7 years 43
after the date of th e actual possession by the owner or the date 44
of completion or termination of the contract, or 4 years after 45
the date that the association was turned over to the unit 46
owners, whichever is latest. 47
3. If the action alleges a latent defect and the claimant 48
can show by clear and convincing evidence that the engineer, 49
architect, or contractor or his or her employer fraudulently 50
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concealed the defect, the action may be commenced within 15 51
years after the time for commencing an action begins to run. 52
4. If the action alleges a latent defect and the claimant 53
can show that the latent defect arises from a material violation 54
of the Florida Building Code, the action may be commenced within 55
10 years after the time for commencing an action begins to run. 56
5. However, Counterclaims, cross-claims, and third-party 57
claims that arise out of the conduct, transaction, or occurrence 58
set out or attempted to be set out in a pleading may be 59
commenced up to 1 year after the pleading to which such claims 60
relate is served, even if suc h claims would otherwise be time 61
barred. 62
6. With respect to actions founded on the design, 63
planning, or construction of an improvement to real property, if 64
such construction is performed pursuant to a duly issued 65
building permit and if a local enforcemen t agency, state 66
enforcement agency, or special inspector, as those terms are 67
defined in s. 553.71, has issued a final certificate of 68
occupancy or certificate of completion, then as to the 69
construction which is within the scope of such building permit 70
and certificate, the correction of defects to completed work or 71
repair of completed work, whether performed under warranty or 72
otherwise, does not extend the period of time within which an 73
action must be commenced. 74
7. As used in this paragraph, the term: 75
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a. "Actual possession" means the date possession of the 76
property where the subject improvements are constructed is 77
delivered to a party other than the contractor or to a person 78
affiliated with the contractor. However, with respect to 79
improvements in a communi ty subject to a homeowners association 80
or condominium association, actual possession means the date 81
that members of the association other than the developer or its 82
successor are entitled to elect a majority of the board of 83
directors or board of administrat ion. 84
b. "Completion of the contract " means the later of the 85
date of final performance of all the contracted services or the 86
date that final payment for such services becomes due without 87
regard to the date final payment is made. 88
Section 2. Subsection (3) of section 471.023, Florida 89
Statutes, is amended to read: 90
471.023 Qualification of business organizations. — 91
(3) Except as provided in s. 768.401 s. 558.0035, the fact 92
that a licensed engineer practices through a business 93
organization does not relie ve the licensee from personal 94
liability for negligence, misconduct, or wrongful acts committed 95
by him or her. Partnerships and all partners shall be jointly 96
and severally liable for the negligence, misconduct, or wrongful 97
acts committed by their agents, em ployees, or partners while 98
acting in a professional capacity. Any officer, agent, or 99
employee of a business organization other than a partnership 100
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shall be personally liable and accountable only for negligent 101
acts, wrongful acts, or misconduct committed by him or her or 102
committed by any person under his or her direct supervision and 103
control, while rendering professional services on behalf of the 104
business organization. The personal liability of a shareholder 105
or owner of a business organization, in his or her capacity as 106
shareholder or owner, shall be no greater than that of a 107
shareholder-employee of a corporation incorporated under chapter 108
607. The business organization shall be liable up to the full 109
value of its property for any negligent acts, wrongful acts, or 110
misconduct committed by any of its officers, agents, or 111
employees while they are engaged on its behalf in the rendering 112
of professional services. 113
Section 3. Subsection (3) of section 472.021, Florida 114
Statutes, is amended to read: 115
472.021 Certification of partnerships and corporations. — 116
(3) Except as provided in s. 768.401 s. 558.0035, the fact 117
that any registered surveyor and mapper practices through a 118
corporation or partnership does not relieve the registrant from 119
personal liability for neglige nce, misconduct, or wrongful acts 120
committed by him or her. Partnerships and all partners shall be 121
jointly and severally liable for the negligence, misconduct, or 122
wrongful acts committed by their agents, employees, or partners 123
while acting in a professional capacity. An officer, agent, or 124
employee of a business organization other than a partnership 125
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shall be personally liable and accountable only for negligent 126
acts, wrongful acts, or misconduct committed by him or her or 127
committed by a person under his or her direct supervision and 128
control while rendering professional services on behalf of the 129
business organization. The personal liability of a shareholder 130
or owner of a business organization, in his or her capacity as 131
shareholder or owner, shall be no greater t han that of a 132
shareholder-employee of a corporation incorporated under chapter 133
607. The business organization shall be liable up to the full 134
value of its property for any negligent acts, wrongful acts, or 135
misconduct committed by any of its officers, agents , or 136
employees while they are engaged on its behalf in the rendering 137
of professional services. 138
Section 4. Subsection (7) of section 481.219, Florida 139
Statutes, is amended to read: 140
481.219 Qualification of business organizations. — 141
(7) A business orga nization is not relieved of 142
responsibility for the conduct or acts of its agents, employees, 143
or officers by reason of its compliance with this section. 144
However, except as provided in s. 768.401 s. 558.0035, the 145
architect who signs and seals the constructio n documents and 146
instruments of service is liable for the professional services 147
performed, and the interior designer who signs and seals the 148
interior design drawings, plans, or specifications shall be 149
liable for the professional services performed. 150
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Section 5. Subsection (5) of section 481.319, Florida 151
Statutes, is amended to read: 152
481.319 Corporate and partnership practice of landscape 153
architecture.— 154
(5) Except as provided in s. 768.401 s. 558.0035, the fact 155
that a registered landscape architect prac tices landscape 156
architecture through a corporation or partnership as provided in 157
this section does not relieve the landscape architect from 158
personal liability for her or his professional acts. 159
Section 6. Subsection (3) of section 492.111, Florida 160
Statutes, is amended to read: 161
492.111 Practice of professional geology by a firm, 162
corporation, or partnership. —The practice of, or offer to 163
practice, professional geology by individual professional 164
geologists licensed under the provisions of this chapter thro ugh 165
a firm, corporation, or partnership offering geological services 166
to the public through individually licensed professional 167
geologists as agents, employees, officers, or partners thereof 168
is permitted subject to the provisions of this chapter, if: 169
(3) Except as provided in s. 768.401 s. 558.0035, the fact 170
that a licensed professional geologist practices through a 171
corporation or partnership does not relieve the registrant from 172
personal liability for negligence, misconduct, or wrongful acts 173
committed by her or him. The partnership and all partners are 174
jointly and severally liable for the negligence, misconduct, or 175
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wrongful acts committed by their agents, employees, or partners 176
while acting in a professional capacity. Any officer, agent, or 177
employee of a corporation is personally liable and accountable 178
only for negligent acts, wrongful acts, or misconduct committed 179
by her or him or committed by any person under her or his direct 180
supervision and control, while rendering professional services 181
on behalf of the corporation. The personal liability of a 182
shareholder of a corporation, in her or his capacity as 183
shareholder, may be no greater than that of a shareholder -184
employee of a corporation incorporated under chapter 607. The 185
corporation is liable up to the full val ue of its property for 186
any negligent acts, wrongful acts, or misconduct committed by 187
any of its officers, agents, or employees while they are engaged 188
on behalf of the corporation in the rendering of professional 189
services. 190
Section 7. Chapter 558, Florida Statutes, consisting of 191
ss. 558.001, 558.002, 558.003, 558.0035, 558.004, and 558.005, 192
Florida Statutes, is repealed. 193
Section 8. Section 768.401, Florida Statutes, is created 194
to read: 195
768.401 Design professionals; contractual limitation on 196
liability.— 197
(1) As used in this section, the term: 198
(a) "Business entity" means any corporation, limited 199
liability company, partnership, limited partnership, 200
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proprietorship, firm, enterprise, franchise, association, self -201
employed individual, or trust, whether fictitiously named or 202
not, doing business in this state. 203
(b) "Design professional" means a person, as defined in s. 204
1.01, who is licensed in this state as an architect, a landscape 205
architect, an engineer, a surveyor, or a geologist or who is a 206
registered interior designer as defined in s. 481.203. 207
(2) A design professional employed by a business entity or 208
an agent of the business entity is not individually liable for 209
damages resulting from negligence occurring within the course 210
and scope of a profession al services contract if: 211
(a) The contract is made between the business entity and a 212
claimant or with another entity for the provision of 213
professional services to the claimant; 214
(b) The contract does not name as a party to the contract 215
the individual employee or agent who will perform the 216
professional services; 217
(c) The contract includes a prominent statement, in 218
capital letters that are at least 5 point sizes larger than the 219
rest of the text, that, under this section, an individual 220
employee or agent may not be held individually liable for 221
negligence; 222
(d) The business entity maintains any professional 223
liability insurance required under the contract; and 224
(e) Any damages are solely economic in nature and the 225
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damages do not extend to personal injuries or property not 226
subject to the contract. 227
Section 9. The amendments to s. 95.11(3)(c), Florida 228
Statutes, made by this act apply to any action commenced on or 229
after July 1, 2022, regardless of when the cause of action 230
accrued, except that any action that w ould not have been barred 231
under s. 95.11(3)(c), Florida Statutes, before the amendments 232
made by this act must be commenced before July 1, 2023. If the 233
action is not commenced by July 1, 2023, and is barred by the 234
amendments to s. 95.11(3)(c), Florida Statu tes, made by this 235
act, then the action is barred. 236
Section 10. This act shall take effect July 1, 2022. 237