November 4, 2004, Introduced by Rep. Condino 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:
1 Sec. 2962. (1) This section applies to an action for
2 negligence or professional malpractice against a certified public
3 accountant. A certified public accountant is liable for civil
4 damages in connection with public accounting services performed
5 by the certified public accountant
only in 1 or more of the
6 following situations:
7 (a) A The
liability arises from a negligent act, omission,
8 decision, or other conduct of the certified public accountant
9 if and the claimant is the 1 or more
of the following:
10 (i) The certified public accountant's client.
1 (ii) A person for whose benefit and guidance the certified
2 public accountant's client intends to supply information prepared
3 or certified by the certified public accountant.
4 (iii) A person who relies on information supplied by the
5 certified public accountant in a specific transaction if the
6 certified public accountant intends the information to influence
7 the person or the certified public accountant knows the person
8 intends to rely on the information.
9 (iv) A person who the certified public accountant could
10 reasonably have foreseen would obtain and rely on information
11 prepared or certified by the certified public accountant.
12 (b) An The
liability arises from an act, omission,
13 decision, or conduct of the certified public accountant that
14 constitutes fraud or an intentional misrepresentation.
15 (c) A negligent
act, omission, decision, or other conduct of
16 the certified public
accountant if the certified public
17 accountant was
informed in writing by the client at the time of
18 engagement that a
primary intent of the client was for the
19 professional public
accounting services to benefit or influence
20 the person bringing
the action for civil damages. For the
21 purposes of this
subdivision, the certified public accountant
22 shall identify in
writing to the client each person, generic
23 group, or class
description that the certified public accountant
24 intends to have rely
on the services. The certified public
25 accountant may be held
liable only to each identified person,
26 generic group, or
class description. The certified public
27 accountant's written
identification shall include each person,
1 generic group, or
class description identified by the client as
2 being benefited or
influenced.
3 (2) As used in this section:
4 (a) "Certified public accountant" means an individual who is
5 registered or licensed or a firm that is licensed under article 7
6 of the occupational code, 1980 PA 299, MCL 339.720 to 339.736.
7 (b) "Client" means the person directly engaging a certified
8 public accountant to perform a professional accounting service.
9 (c) "Person" means an individual, corporation, business
10 trust, estate, trust, partnership, limited liability company,
11 limited liability partnership, association, joint venture, or
12 government; a governmental subdivision, agency, or
13 instrumentality; a public corporation; or any other legal or
14 commercial entity.
15 (d) "Professional accounting service" includes, but is not
16 limited to, the compilation, review, certification, or auditing
17 of, or the expression of a professional opinion or other
18 reporting on, a financial statement or other information covering
19 a specified period of time.
20 (e) "Specific transaction" means a particular transaction
21 between a client and a claimant.