QUESTIONS

1. Can the shareholders of a P.C. be liable for the negligent acts or omissions of other professionals in the P.C.?

2. I am a licensed realtor, can I incorporate as a P.C.?

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ANSWERS

1. Can the shareholders of a P.C. be liable for the negligent acts or omissions of other professionals in the P.C.?

Yes, but only up to the applicable limits set forth under ORS Chapter 58. A licensed Oregon shareholder will be jointly and severally liable with all other licensed Oregon shareholders of the P.C. only for the negligent or wrongful acts or omissions committed in the rendering of the professional services on behalf of the corporation to the clients or customers. Such joint and several liability will not exceed $300,000 and the total joint and several liability for a single claim against one or more licensed Oregon shareholders can not exceed $2 million during a calendar year. However, if the total number of licensed shareholders multiplied by $300,000 is less than $2 million, then such lesser amount is the limitation for a single claim during a calendar year.

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2. I am a licensed realtor, can I incorporate as a P.C.?

Yes, for purposes of ORS Chapter 58, the term "professional" includes:

• Accountants;
• Architects;
• Attorneys;
• Chiropractors;
• Dentists;
• Landscape architects;
• Naturopaths;
• Nurse practitioners;
• Psychologists;
• Physicians;
• Podiatrists;
• X-ray technologists;
• Real estate appraisers; and
• Any other persons providing personal services to the public substantially similar to those listed above that may be lawfully rendered only pursuant to a license.

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