Trio of Appellate Decisions Confirm Insurers Duty to Defend Home Builder Against Defective Work Claims

The latest in a series of decisions by the 11th Circuit Court of Appeals confirms an insurers duty to defend contractors against complaints of defective work and damages during construction. The three appeals, stretching from 2019 through 2024, provide a lot of insight into the importance of the allegations of the complaint, how coverage can be affected by them, and the breadth of the duty to defend even where coverage may be questionable.

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Court Affirms Extinguishment of $1.8 Million Construction Lien Over Failure to Timely Add Surety to Lawsuit

The contractor amended its construction lien, which was then transferred to a bond and contested by the property owner after the start of litigation. When the contractor failed to add the bond’s surety to the lawsuit within 60 days, the property owner sought summary judgment and obtained an order finding the lien was extinguished based on the operation of two sections of Florida’s Construction Lien law.

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Proposed Statute With Numerous Changes to Florida's Building Codes Act Headed to Governor for Signature

The changes affects plan requirements for window, door, and garage door replacements; make changes to the sections governing private providers; impose new deadlines for permit application approvals and penalties for failing to meet them; and new standards for certain unvented spaces.

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Court Finds Construction Company President Potentially Liable for Injuries to Worker Who Fell Off Roof

Florida’s Third District Court of Appeal reversed summary judgment entered in favor of the construction company’s president, finding that fact issues remained about whether the president ordered the company’s employee to place a tarp on a roof without also providing appropriate safety equipment.

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Statute Going to Governor That Affects Local Licensing Boards, Increases Homeowners' Recovery Fund Limits, and Adjust Electrical Contractor Specialty Licensing

The statute modifies three sections of Florida’s Contractor Licensing Statute. First it expands the type of relief that can be awarded by local licensing boards and imposes requirements on their recommended penalties. It also increases the amount of funds the Homeowners’ Construction Industry Recovery Fund can award, starting January 2025. Finally, it adjusts the scope of electrical contractor specialty licensing as it relates to advertising signs.

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New Statute Allowing HVAC Contractors to Perform Additional Electrical Work and Expanding Warranty Requirements to be Presented to Governor

The new statute modifies the definitions of work that can be performed by Class A and B HVAC contractors and Mechanical contractors in Florida to include additional electrical work. It also requires warranties on HVAC systems to be transferable and eliminates certain hurdles to transferability.

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Statute Allowing Cancellation of Roofing Contracts Within 10 Days of Signing to be Presented to Governor for Signature

The proposed statute modifies 489.147, Florida Statutes, which was enacted in 2021 and governs certain prohibited practices for roofing and other contractors operating on insurance-funded projects or in emergency areas. If the statute becomes law, homeowners would be able to cancel contracts without penalty within 10 days of signing under certain circumstances.

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Statute Extending Local Licensing Deadlines and Requiring CILB to Issue Certain Registered Licenses is Being Sent to Governor for Signature

The statute moves the expiration of local licensing from July 1, 2024 to July 1, 2025, and requires the Florida Construction Industry Licensing Board to issue registered licenses to contractors that had certain local licenses from 2021 through 2023 in areas where those local licenses have been phased out.

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Statute Requiring Warranties for Newly Constructed Homes to be Sent to Governor for Signature

The statute, if enacted, would require a builder of a newly constructed single family residence, duplex, triplex, quadruplex, or manufactured home to provide a one year warranty on all equipment, materials, or workmanship where a defect in those items results in a material violation of the Florida Building Code.

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Two Proposed Statutes Overhaul Scopes of Work Allowed for Commercial and Residential Pool/Spa Contractors and Pool/Spa Servicers

The proposed bills would more specifically define the work allowed to be done by commercial pool/spa contractors, more specifically define the limits imposed on residential pool/spa contractors, and also more clearly define the scope of work that servicers can perform.

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Proposed Statute Would Require Escrow Accounts for Certain Residential Projects and Certain Contractors

If enacted, contractors licensed for less than five years, or contracting in emergency areas within 18 months following the emergency, or that had been disciplined within the last five years would be required to escrow any deposit of $10,000.00 or higher. Failure to do so would be a violation of Chapter 489, Florida Statutes, and be a felony.

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Proposed Statute Would Allow Homeowners to Cancel Roofing Contracts Within 10 Days of Signing

The proposed statute modifies 489.147, Florida Statutes, which was enacted in 2021 and governs certain prohibited practices for roofing and other contractors operating on insurance-funded projects or in emergency areas. If enacted, homeowners would be able to cancel contracts without penalty within 10 days of signing under certain circumstances.

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Proposed Statute Would Require Boards Denying Certain Licensing Applications to Submit Denial to DBPR Secretary for Review

The proposed law would apply to denials of licensing applications submitted through reciprocity or endorsement programs where the denial is based on a finding that the requirements for licensure in the original state are not substantially equivalent to the requirements of Florida or are otherwise insufficient for licensure in this state.

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Court Reverses Dismissal of Two Claims by General Contractor Against Subcontractor Finding They Were Not Barred by Credit Agreement Between the Parties

Florida’s Fourth District Court of Appeal partially reversed a dismissal with prejudice of all of a general contractor’s claims against a subcontractor, finding that the credit agreement between the parties did not preclude claims for breach of an implied in fact contract or negligence. The case is an important reminder that not only do the terms of contracts matter, but so do when they are signed, who signs them, and how they are referred to in pleadings.

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Proposed Statute Would Require Florida's CILB to Issue Registered Licenses to Certain Phased Out Local Licenseholders

The statute is being proposed in response to a phase out of certain contractor licenses issued by cities and counties, and would require the Florida Construction Industry Licensing Board to issue registered licenses to contractors that had certain local licenses from 2021 through 2023 in areas where those local licenses have been phased out.

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Court Affirms Order Imposing Sanctions Against Electrical Contractor for Aiding Unlicensed Contractor

The final order imposed fines and continuing education against the electrical contractor, and possibly could have been avoided if the contractor had properly responded to the administrative complaint or properly preserved his rights to a final hearing. The case is a cautionary tale to contractors facing licensing complaints to take them seriously and comply with deadlines and instructions relating to the complaint.

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