SB-0783, As Passed House, June 14, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 783

     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

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 Subject to subsection (2), 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 Subject to subsection (2), 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. This subdivision does not

apply to an action arising out of an annual report required by the

cemetery regulation act, 1968 PA 251, MCL 456.521 to 456.543, or

the prepaid funeral and cemetery sales act, 1986 PA 255, MCL

328.211 to 328.235.

     (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.