Proportionate Liability

(a)This Section applies to all causes of action of the type specified herein filed on or after the effective date of the enactment of this section.

(b)This Section governs any claim for money damages brought against any licensee or any CPA firm registered, licensed, or practicing in Guam; or any employee or principal of such firm by any person or entity claiming to have been injured by the defendant licensee or other person or entity.

(c)No judgment for money damages may be entered against any licensee, firm, employee, or principal described in Subsection

(b)in an action covered by this Section except in accordance with the provisions of this Subsection.

(1)If the party seeking a judgment for damages against the licensee proves that the licensee acted with the deliberate intent to deceive, manipulate or defraud for the licensee=s own direct pecuniary benefit, the liability of the licensee shall be determined according to the principles that generally apply to such an action.

(2)If the licensee is not proven to have acted with the deliberate intent to deceive, manipulate or defraud for the accountant=s own direct pecuniary benefit, the amount of the accountant=s liability in damages shall be determined as follows: COL4122017 CH. 35 ACCOUNTANCY

(A)The trier of fact shall determine the percentage of responsibility of the plaintiff, of each of the defendants, and of each of the other persons or entities alleged by the parties to have caused or contributed to the harm alleged by the plaintiff. In determining the percentages of responsibility, the trier of fact shall consider both the nature of the conduct of each person and the nature and extent of the causal relationship between that conduct and the damage claimed by the plaintiff.

(B)The trier of fact shall next determine the total amount of damage suffered by the plaintiff caused in whole or in part by the plaintiff, the defendants, and other persons alleged to have caused or contributed to the damage.

(C)The trier of fact shall then multiply the percentage of responsibility of the licensee (determined under (A)) by the total amount of damages (determined under (B)) and shall enter a judgment or verdict against the licensee in an amount no greater than the product of those two

(2)factors.

(D)In no event shall the damages awarded against or paid by a licensee exceed the amount determined under

(C)or twenty

(20)times the total fee paid, or to be paid, to licensee by plaintiff, whichever is less. The licensee shall not be jointly liable on any judgment entered against any other party to the action.

(E)Except where a contractual relationship permits, no defendant shall have a right to recover from a licensee any portion of the percentage of damages assessed against such other defendant.