city, the agendathe agenda
TRANSCRIPT
Vol. XXXIII, No. 1 THE FLORIDA BAR Fall 2009
City,County
andLoCaL
Government Law
SeCtion
The AgendaThe Agenda
INSIDE:
Intern Experience – Summer 2009 Miami-Dade Commission on Ethics .......................................... 2
Calendar of Events ........................... 3
CLE Audio/Video List ........................ 4
Sunshine Law, Public Records and Ethics Seminar ............................... 5
See “Contractual Caps” page 7
Have Licensed Professionals Lost Contractual Caps On Liability?by Jeffrey Albinson
Introduction Limitation of Liability (LOL)clauses are used by (non-lawyer)professionals to limit liability toapre-setamount.LOLclausesserveasa contractual raincoat for sometypesofexposure–notstoppingtherain, justkeeping somepartsdry.Untilrecently,professionalliability(PL)underwriterscouldrelyonLOLclauses to control exposureunderPLpolicies.LOLprotectionallowsratestructuresthatreflect(inpart)thecontrolofferedbyLOLclauses.
Claims departments and defensecounsel have also relied on LOLprotection to evaluateanddefendcases. CourtshavetraditionallyheldLOLclausesenforceableprovidedthat(1)theclauseclearlyandunequivocallyindicatedtheparties’ intentions (2)thelimitationdidnotabsolveanyonepartyofallliabilityandstillprovidedadeterrenttonegligenceand(3)thepartiestothecontracthadequalbar-gainingpower.Diesel Repower Inc. v. Islander Investments LTD, Inc.,
271F.3d1318,1324(11thCir.2001). Anew3rdDCAcasemaybringthisprotectiontoanendandspellstroubleforprofessionalliabilitycarri-ersthatmightgetburnedbythis“af-ter-the-fact”lossofexposurecaps. InGerhardt Witt v. La Gorce Country Club Inc. and La Gorce Country Club vs. ITT Industries,(No3D08-1812) consolidatedwith(3D08-1825) - 34 FLW D1161 (FL3DCA2009), theCourthas issuedanopinion thatdisturbs the legallandscapeandwhichcould change
Chair’s Reportby James L. Bennett
Idon’tknowaboutyoubut it isalways refreshing toyearyouthfulperspectivesonthepracticeoflaw.Itisalwaysgoodforustoberemindedthat thereareperspectiveson thepracticeoflawunfetteredbyyearsofdoingwhatwedo.Havinginternsinyourofficeisasourceofsuchrefresh-ingperspectives. In this issue theMiami-DadeCommissiononEthicssharestheirinternexperience. It isgreatwhen lawyersstepupto share their thoughts onemerg-ing issuesand isespeciallyhelpfulwiththeytakethetimetowriteanarticleforpublicationintheAgenda.Anemergingissuethatwillhaveanimpactoncontractingwithlicensed
professionalsandany limitationofindividualliabilityundertherecentLaGrocecase.InthisissueGeffAl-binsonhastakenthetimetoauthorathoughtfularticleandIcommendittoyouattention.IencourageyourtocontributearticlestotheAgenda. Finally the2008-2009budget ispublished inthis issueandweownmuchtothesuccessofthe2009Sun-shineLaw,PublicRecordsandEthicsseminarforhelpingthebottomline.Thebrochureforthe2010seminarisinthisissue.Thisseminarisexpectedtobemadeavailablethroughavarietyofmethods.Encourageyourelectedof-ficialtoaccessthecontentinamannerthatismostconvenienttothem.
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Intern Experience – Summer 2009Miami-Dade Commission on Ethicsby Robert Meyers, Executive Director and Victoria Frigo, Staff Attorney
ThankstoagrantfromthissectionofTheFloridaBar,theMiami-DadeCommissiononEthicshiredKimSal-amone,astudentattheUniversityofMiamiSchoolofLaw,asoursummerintern.Kimhadrecentlycompletedanethicslawseminardealingspecificallywith theCountyethicsordinances.OurindependentCountyagencyinter-prets,enforces,andprovidestraininginCountyandmunicipalethicslawsaswellastheCounty’sCitizens’BillofRights,electioncampaignandpublicfinanceordinances,andwhistleblowerretaliationcomplaints. Twoyearsago,theCountyadopteda“strongmayor”formofgovernment,whichhasledtonumerousadminis-trativechanges.WeaskedKimtoaddtoherpreviousstudiesand investi-gatehowothersimilarlyorganizedjurisdictionshandlemayoralconflictsof interest.Wewereparticularly in-terestedinthemayor’sdutytotakeofficialactiontoapproveorvetogov-
ernmentcontractsinspiteofpossibledivideloyalties.Ourinternalsocon-tributedtotheongoingdiscussionofwhoisthemunicipalattorney’sclient.Thecityattorney-clientissuewases-peciallyrelevantthissummerbecauseofacomplicatedethicsopinionrelatedtothismatter. Overthesummer,theExecutiveDi-rectoroftheEthicsCommissionmetwithCountyCommissioners toen-couragethepassageofseveralamend-mentstotheethicsordinance,includ-ingaprovision thatwould compelgovernmentcontractorstoadoptpor-tionsoftheCountyethicscode.Kimidentifiedsomeofthelegallimitationsthatcanbeimposedonentitiesthatstandintheshoesofgovernment. Kimsaidthatsheappreciatedsee-ingthesynergiesbetweenpubliceth-ics lawsandotherbodiesof law.Inonecase,wewererequiredtoconductsomeon-the-spotresearchinvolvingtax lawandfinancialdisclosurere-
quirements.Kimandastaffattorneycombinedeffortssothatthequestioncouldberesolvedquickly. Followingaseriesoftrainingses-sionsongovernmentprocurement,Kimreflectedongovernmentservicecomparedtoworkintheprivatesec-tor.She concluded that theaimofthelocalgovernmentattorneywastocontributetothepublicgood;shefeltthatherpreviousexperienceasaninternintheprivatesector,althoughveryimportant,usuallybenefitedonlyoneperson. Havingresearchedandparticipat-ed inseveralcomplexareasof localgovernmentandethicslaw,Kimsaidthatshewillusethesefindingstowardcompletingalengthywritingrequire-mentforgraduation.Wearepleasedtoknowthatoursummerinternwillbeabletoputherowngoodeffortstoworkagainforgraduationfromlawschoolandpossibleserviceingovern-mentlaw.
ThisnewsletterispreparedandpublishedbytheCity,CountyandLocalGovernmentLawSectionofTheFloridaBar.
JamesBennett,Clearwater............................................................................Chair
VivienMonaco,Orlando........................................................................Chair-elect
KennethA.Tinkler,Tampa................................................... Secretary-Treasurer
GrantWilliamsAlley,Ft.Myers........................................ ImmediatePastChair
MaryHelenFarris,Tampa........................................................................... Editor
RickyLibbert,Tallahassee...............................................ProgramAdministrator
ColleenBellia,Tallahassee.......................................................................... Layout
Statementsorexpressionsofopinionorcommentsappearinghereinarethoseoftheeditor(s)orcontributorsandnotofTheFloridaBarortheSection.
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2009-2010Calendar of Events
EXECUTIVE COUNCIL SCHEDULE
SEMINAR SCHEDULE
January 22, 2010Hilton Orlando
May 6, 2010Don CeSar Hotel
St. Pete Beach
35th Annual Public Employment Labor Relations Forum
October 22-23, 2009The Peabody Hotel
Orlando
Sunshine Law, Public Records, and Ethics SeminarFebruary 12, 2010
University Center ClubTallahassee
2010 Certification Review CourseMay 6, 2010
Don CeSar Beach ResortSt. Pete Beach
Land Use SeminarMay 6, 2010
Don CeSar Beach ResortSt. Pete Beach
33rd Annual Local Government Law in FloridaMay 7-8, 2010
Don CeSar Beach ResortSt. Pete Beach
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the Florida Bar Continuing Legal Education Committee and theCity, County and Local government Law section present
Sunshine Law, Public Records and Eth ics SeminarCoUrsE CLAssiFiCAtion: intErMEdiAtE LEVEL
one Location: February 12, 2010Leon County Civic Center • 505 W. Pensacola st. • tallahassee 32301850-222-0400
Course no. 0990r
CLE CREDITS
CLEr ProgrAM(Max. Credit: 8.0 hours)
General: 8.0 hoursEthics: 5.0 hours
CErtiFiCAtion ProgrAM(Max. Credit: 8.0 hours)
City, County & Local Government: 8.0 hours
Seminar credit may be applied to satisfy CLER / Certification require-ments in the amounts specified above, not to exceed the maximum credit. See the CLE link at www.floridabar.org for more information.
Prior to your CLER reporting date (located on the mailing label of your Florida Bar News or available in your CLE record on-line) you will be sent a Reporting Affidavit if you have not completed your required hours (must be returned by your CLER reporting date).
8:00 a.m. – 8:20 a.m. Late registration
8:20 a.m. – 8:35 a.m.introductionJames L. Bennett, Chair, City, County and Local Government
Law Sectionopening remarksRobert L. Teitler, Program Chair, Ft. Lauderdale
8:35 a.m. – 9:25 a.m.sunshine Law overviewBarbara Petersen, President, First Amendment Foundation,
Tallahassee
9:25 a.m. – 10:15 a.m.Public records Law overviewPatricia Gleason, Executive Office of the Governor, Tallahassee
10:15 a.m. – 10:30 a.m. Break
10:30 a.m. – 11:20 a.m.Honest services FraudHerbert W.A. Thiele, County Attorney, Leon County, Tallahassee
11:20 a.m. – 12:10 p.m.Ethics: Abuses Exposed, Filings disclosed and Procedures imposedPhilip Claypool, Executive Director, Florida Commission on
Ethics, Tallahassee
12:10 p.m. – 1:10 p.m. Lunch (included in registration fee)
1:10 p.m. – 2:00 p.m.Ethics: thinking Ahead - the Use of information and Post-Employment restrictionsJulia Cobb Costas, Florida Commission on Ethics, Tallahassee
2:00 p.m. – 2:50 p.m.Ethics: recognizing a Voting Conflict and What to do if You Have oneVirlindia Doss, Deputy Executive Director, Florida Commission
on Ethics, Tallahassee
2:50 p.m. – 3:05 p.m. Break
3:05 p.m. – 3:55 p.m.Ethics: Conflict of interest standardsDan Carlton, Florida Commission on Ethics, Tallahassee
3:55 p.m. – 4:45 p.m.Ethics: Harmful Hospitality and Corrupting Cups of Coffee - A review of gift LawsCharles “Chris” Anderson, Florida Commission on Ethics,
Tallahassee
CitY, CoUntY And LoCAL goVErnMEnt sECtion
James L. Bennett, Clearwater — ChairVivien J. Monaco, Orlando — Chair-electJewel White Cole, Orlando — CLE Chair
CLE CoMMittEEPaul H. Chipok, Orlando, Chair
Terry L. Hill, Director, Programs Division
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CONtRACtuAL CAPSfrom page 1
thefaceofprofessionalE&Ocoverageintotheforeseeablefuture.
the La Gorce Case LaGorceCountryClub(LaGorce)wanted to irrigate its golf coursethroughawater treatmentsysteminsteadofusingmunicipalwater.LaGorcecontractedwithITTtodesignandbuildthesystem.GerhardtWitt(Witt), a professional geologist li-censedinFlorida,ownedGerhardtM.WittandAssociates(GMWA).GMWAultimatelycontractedwithLaGorcefor consultingserviceson theproj-ect.ThecontracthadanLOLclausethatlimitedliabilityforsomeclaimsto thegreaterof theamountof thecontractorthetotaldollaramountofthe“approvedportionsforthescopeof theproject.”GMWAwasspecifi-callynamed in theLOLclausebutnotWitt. Thesystemwasusedforfourteenmonthsbeforecomplete failure.LaGorcebroughtsuitagainstGMWA,WittandITT.Thesuitclaimed, in-ter alia, professional malpracticeagainstWittandGMWA.Thetrialcourt foundWittandGMWAliableandfoundtheLOLclauseappliedtoGMWAbutnotWitt.ThetrialcourtfoundWittpersonallyliablebecauseheprovidedservicesbut found theLOLclausedidnotprotecthimbe-causehewasnotapartytothewrit-tenagreement. Evenifhehadbeenapartytothecontract,thecourtindicateditwouldhaverejectedtheLOLclause,rely-inguponMoransais v. Heathman, 744 So. 2d 973, 983 (FL 1999)whichopinionheldthat“it isquestionablewhetheraprofessional…[can]legallyorethicallylimitaclient’sremediesbycontractinthesamewaythatamanu-facturer[can]withapurchaserinapurelycommercialsetting.”(Note:Ed-itedforclarityandbrevity).TheCourtheldevenifWitthadbeencoveredbythelimitationof liabilityclause,theMoransaisdecisiondeemstheclauseunenforceable. MoransaisisnotanLOLcase.Itdoes featureanotherold friend, the“economiclossrule”(ELR).TheELRgenerallyrestrictsaplaintiff to the
recoveryofonlyeconomiclosseswhenthepartiesareincontractualprivityandonepartyseekstorecoverdam-agesintortformattersarisingfromthe contract; orwhenadefect inaproductcausesdamagetotheproductbutnopersonalinjuryordamagetootherproperty.TheMoransaiscourtwrote:
[T]heeconomiclossruledoesnotbaracauseofactionagainstaprofes-sionalforhisorhernegligenceeventhoughthedamagesarepurelyeco-nomicinnatureandtheaggrievedpartyhasentered intoacontractwiththeprofessional’semployer.WealsoholdthatFloridarecognizesacommonlawcauseofactionagainstprofessionalbased in theiracts ifnegligencedespitethelackofdirectcontractbetweentheprofessionalandtheaggrievedparty.
La GorceconcedesthatMoransaisdoesnotdiscussthe insulationofaprofessionalbyanLOLclause;how-ever it indicates that theSupremeCourt’sanalysis“highlightstheextra-contractual”natureofaclaimagainstaprofessional.La GorcefoundthatsinceMoransais concludes thatanegligenceclaimoperatesoutsideofaprofessionalservicescontract,itisinconsistent to limit liability toanamountspecifiedinthecontract.
the Impact of La Gorce Moving Forward While the case involved a li-censed geologist, the language is
broadenoughtocoveranylicensed“professional.”Onitsface,itmeansprofessionalsinthe3rdDCAlikelycannot limit liability through anLOL clause. If other jurisdictionspickupthedecisionoritisappealedto theFloridaSupremeCourtandupheld,theopinionwillhavestate-wideimpact. Carriersandlawyerssettingpremi-ums,evaluatingriskandevaluatingexposuremustnowbedoneassum-ingnoLOLprotection.Inthepresenteconomicclimatewherecommercialentities (developers, investors,etc.)areexamining failedprojectswithaneyetowardplacingblameonpro-fessionals involved,LOLclausesnolongeroffertheprotectiontheyoncedid.Allconcernedshouldexpectanincreaseinexposureandclaims.
byJeffreyAlbinsonDaniels,Kashtan,Downs,Robertson
andMcGirneyPOBox5047
Clearwater,[email protected]
Jeff Albinson is an attorney with Dan-iels, Kashtan, Downs, Robertson & McGirney, P.A. in Tampa. Mr. Albi-nson focuses his practice on the de-fense of professionals (including law-yers, architects, engineers, real estate agents, insurance agents and others) in negligence cases as well as Florida Bar, DBPR and other licensing bod-ies. NOTE: This article was originally published in the August/September Issue of Res Ipsa Loquitor.
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