(On Behalf of the Nevada Society of Certified
Public Accountants)
April 29, 1997
____________
Referred to Committee on Judiciary
SUMMARY--Changes limit of time within which actions for malpractice may be commenced against accountants, accounting firms, attorneys and veterinarians. (BDR 2-218)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to civil actions; changing the limit of time within which actions for malpractice may be commenced against accountants, accounting firms, attorneys and veterinarians; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
~^
Section 1 Chapter 11 of NRS is hereby amended by adding thereto a new section to read as follows:
1. An action against an accountant or accounting firm to recover damages for malpractice must be commenced within:
(a) Two years after the date on which the alleged act, error or omission is discovered or should have been discovered through the use of reasonable diligence;
(b) Four years after completion of performance of the service for which the action is brought; or
(c) Four years after the date of the initial issuance of the report prepared by the accountant or accounting firm regarding the financial statements or other information,
whichever occurs earlier.
2. The time limitation set forth in subsection 1 is tolled for any period during which the accountant or accounting firm conceals the act, error or omission upon which the action is founded and which is known or through the use of reasonable diligence should have been known to him or the firm.
3. As used in this section, "accountant" means a person certified or registered as a public accountant pursuant to chapter 628 of NRS who holds a live permit, as defined in NRS 628.019.
Sec. 2. NRS 11.207 is hereby amended to read as follows:
11.207 1. [No] An action against [any accountant,] an attorney or veterinarian to recover damages for malpractice, whether based on a breach of duty or contract, [may] must be commenced [more than] within 4 years after the plaintiff sustains damage [and] or within 2 years after the plaintiff discovers or through the use of reasonable diligence should have discovered the material facts which constitute the cause of action [.] , whichever occurs earlier.
2. This time limitation is tolled for any period during which the [accountant,] attorney or veterinarian conceals any act, error or omission upon which the action is founded and which is known or through the use of reasonable diligence should have been known to him.
Sec. 3. The amendatory provisions of this act do not apply to an action filed before July 1, 1997.
Sec. 4. This act becomes effective on July 1, 1997.