Bill Text: FL S0292 | 2013 | Regular Session | Comm Sub
Bill Title: Deceptive and Unfair Trade Practices
Spectrum: Slight Partisan Bill (Republican 5-2)
Status: (Introduced - Dead) 2013-04-16 - Laid on Table, companion bill(s) passed, see CS/CS/HB 55 (Ch. 2013-186) [S0292 Detail]
Download: Florida-2013-S0292-Comm_Sub.html
Florida Senate - 2013 CS for CS for SB 292
By the Committees on Judiciary; and Commerce and Tourism; and
Senators Richter, Flores, Bean, Brandes, and Grimsley
590-03892-13 2013292c2
1 A bill to be entitled
2 An act relating to deceptive and unfair trade
3 practices; amending s. 501.975, F.S.; conforming
4 provisions; creating s. 501.98, F.S.; requiring a
5 claimant to provide a demand letter to the motor
6 vehicle dealer as a condition precedent to initiating
7 civil litigation, including arbitration, against such
8 dealer under the Florida Deceptive and Unfair Trade
9 Practices Act; providing for expiration of the demand
10 letter after a specified period; providing for the
11 tolling of applicable time limitations for initiating
12 actions; requiring a stay of civil litigation,
13 including arbitration, brought without compliance with
14 the demand letter requirements; providing an
15 additional opportunity for claimants to comply with
16 specified provisions; providing a condition that
17 constitutes waiver of notice; providing for
18 applicability; requiring that a specified notice be
19 provided to consumers and acknowledged before
20 provisions may apply; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Section 501.975, Florida Statutes, is amended to
25 read:
26 501.975 Definitions.—As used in this part s. 501.976, the
27 term following terms shall have the following meanings:
28 (1) “Customer” includes a customer’s designated agent.
29 (2) “Dealer” means a motor vehicle dealer as defined in s.
30 320.27, but does not include a motor vehicle auction as defined
31 in s. 320.27(1)(c)4.
32 (3) “Replacement item” means a tire, bumper, bumper fascia,
33 glass, in-dashboard equipment, seat or upholstery cover or trim,
34 exterior illumination unit, grill, sunroof, external mirror and
35 external body cladding. The replacement of up to three of these
36 items does not constitute repair of damage if each item is
37 replaced because of a product defect or damaged due to vandalism
38 while the new motor vehicle is under the control of the dealer
39 and the items are replaced with original manufacturer equipment,
40 unless an item is replaced due to a crash, collision, or
41 accident.
42 (4) “Threshold amount” means 3 percent of the
43 manufacturer’s suggested retail price of a motor vehicle or
44 $650, whichever is less.
45 (5) “Vehicle” means any automobile, truck, bus,
46 recreational vehicle, or motorcycle required to be licensed
47 under chapter 320 for operation over the roads of Florida, but
48 does not include trailers, mobile homes, travel trailers, or
49 trailer coaches without independent motive power.
50 Section 2. Section 501.98, Florida Statutes, is created to
51 read:
52 501.98 Demand letter.—
53 (1) As a condition precedent to initiating any civil
54 litigation, including arbitration, arising under this chapter
55 against a motor vehicle dealer, which may also include its
56 employees, agents, principals, sureties, and insurers, a
57 claimant must give the dealer a written demand letter at least
58 30 days before initiating the litigation.
59 (2) The demand letter, which must be completed in good
60 faith, must:
61 (a) State the name, address, and telephone number of the
62 claimant.
63 (b) State the name and address of the dealer.
64 (c) Describe the underlying facts of the claim, including a
65 statement describing each item for which actual damages are
66 claimed.
67 (d) State the amount of damages, or, if not available, the
68 claimant’s best estimate of the amount of damages.
69 (e) To the extent available to the claimant, be accompanied
70 by all transaction or other documents upon which the claim is
71 based.
72
73 In any challenge to the claimant’s compliance with this
74 subsection, the demand letter shall be deemed satisfactory if it
75 contains sufficient information to reasonably put the dealer on
76 notice of the nature of the claim and the relief sought.
77 (3) The demand letter must be delivered by the United
78 States Postal Service or by a nationally recognized carrier,
79 return receipt requested, to the address at which the subject
80 vehicle was purchased or leased or at which the subject
81 transaction occurred, or an address at which the dealer
82 regularly conducts business.
83 (4) Notwithstanding any provision of this chapter:
84 (a) A claimant may not initiate civil litigation, including
85 arbitration, against a dealer or its employees, agents,
86 principals, sureties, or insurers for a claim arising under this
87 chapter related to, or in connection with, the transaction or
88 event described in the demand letter if, within 30 days after
89 receipt of the demand letter, the dealer pays the claimant the
90 amount sought in the demand letter, plus a surcharge of the
91 lesser of $500 or 10 percent of the damages claimed.
92 (b) A dealer and its employees, agents, principals,
93 sureties, and insurers may not be required to pay the attorney
94 fees of the claimant in any action brought under this chapter
95 if:
96 1. The dealer, within 30 days after receipt of the demand
97 letter, notifies the claimant in writing, and a court or
98 arbitrator subsequently agrees that the amount sought in the
99 demand letter is not reasonable in light of the facts of the
100 transaction or event described in the demand letter or if the
101 demand letter includes items and amounts not properly
102 recoverable under this chapter; or
103 2. The claimant fails to sufficiently comply with this
104 section; however, to the extent that there is a challenge to the
105 sufficiency of the demand letter, the demand letter shall be
106 deemed satisfactory if it contains sufficient information to
107 reasonably put the dealer on notice of the nature of the claim
108 and the amount and relief sought such that the dealer could
109 appropriately respond.
110 (5) The demand letter required by this section expires 30
111 days after receipt by the dealer, unless renewed by the
112 claimant, and does not place a limitation on the damages that
113 the claimant may claim in any subsequently maintained civil
114 litigation, including arbitration. Payment of the damages
115 claimed in the demand letter and the required surcharge as set
116 forth in this section within 30 days after receipt of the demand
117 letter:
118 (a) Does not constitute an admission of any wrongdoing or
119 liability by the dealer.
120 (b) Is protected under s. 90.408 from introduction as
121 evidence during any civil litigation, including arbitration.
122 (c) Releases the dealer and its employees, agents,
123 principals, sureties, and insurers from any claim, suit, or
124 other action that could be brought arising out of, or in
125 connection with, the specific transaction, event, or occurrence
126 described in the demand letter; but does not serve as a release
127 as to items of damages that are not recoverable under this
128 chapter.
129 (6) The applicable time limitations for initiating an
130 action under this chapter are tolled for 30 days after the date
131 of delivery of the demand letter to the dealer pursuant to
132 subsection (3), or such other period agreed to in writing and
133 signed by the parties after the demand letter is received by the
134 dealer.
135 (7) This section does not apply to any action brought as a
136 class action that is ultimately certified as a class action or
137 to any action brought by the enforcing authority.
138 (8) If a claimant initiates civil litigation, including
139 arbitration, without first complying with this section, the
140 court or arbitrator shall stay the action upon timely motion
141 until the claimant complies with this section. Attorney fees and
142 court or arbitration costs incurred by the claimant before
143 compliance with this section are not recoverable under this
144 chapter.
145 (9) This section applies only to civil litigation,
146 including arbitration, arising out of a transaction for which
147 the dealer has provided the following written notice to the
148 consumer, which must be acknowledged by the consumer, and which
149 must be in a font size no smaller than that of the predominant
150 text on the page in which the notice is disclosed, or if it is
151 disclosed by itself, in a font size of at least 12 point:
152
153 “Section 501.98, Florida Statutes, requires that, at
154 least 30 days before bringing any claim against a
155 motor vehicle dealer for an unfair or deceptive trade
156 practice, a consumer must provide the dealer with a
157 written demand letter stating the name, address, and
158 telephone number of the consumer; the name and address
159 of the dealer; a description of the facts that serve
160 as the basis for the claim; the amount of damages; and
161 copies of any documents in the possession of the
162 consumer which relate to the claim. Such notice must
163 be delivered by the United States Postal Service or by
164 a nationally recognized carrier, return receipt
165 requested, to the address where the subject vehicle
166 was purchased or leased or where the subject
167 transaction occurred, or an address at which the
168 dealer regularly conducts business.”
169 Section 3. This act shall take effect July 1, 2013.
