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.
Read moreCourt Discharges Lien Where Subcontractor Fails to Timely File Suit to Foreclose
The general contractor filed a lawsuit pursuant to 713.21, Florida Statutes, to discharge two construction liens recorded by a subcontractor. When the subcontractor filed a motion for extension of time to respond to the complaint, as opposed to a lawsuit to foreclose, the court discharged the construction liens.
Read moreCourt Refuses to Enforce Lien Where It Was Not Clear That Person Entering Into Contract was Agent of Property Owner
The contract at issue was entered into between the son of the property owner and a contractor, and the court ultimately refused to enforce a lien against the property owner due to conflicting evidence about whether the son was actually acting as an agent of the property owner for the purposes of the contract.
Read moreMany Changes to Florida's Construction Lien Law Take Effect October 1, 2023.
Earlier this week, Florida’s Governor signed House Bill 331, which included many changes to Chapter 713, Florida Statutes, better known as Florida’s Construction Lien Law. The changes include new definitions, clarification of time period calculations, changes to notices of commencement and notices of termination, and changes to lien transfer bond calculations. A new section of the statute is also created, and another section is also repealed. All people in the construction industry need to be up to date on the new statutory provisions.
Read moreCourt Affirms Ruling that Electrical Contractor Cannot Increase Lien Transfer Bond Amount After Judgment is Entered
The court reversed a trial court order granting a motion to increase the amount of the bond entered after the final judgment, finding that the plain language of 713.24, Florida Statutes, only applied to pending actions.
Read moreRecent Court Order Discharges $253,584.00 Lien That Was Prepared by Third-Party Rather Than Employee or Attorney
The trial court order entered late last year discharged a $253,584.00 lien because it failed to meet several requirements of Florida’s Construction Lien law, including being prepared by either the lienor or its attorney. The case is a cautionary tale of the risks of using third-party services to prepare construction liens.
Read more3 Changes Contractors Working in Florida Need to be Aware of for 2023
2023 is poised to be a year full of changes for contractors working in Florida, regardless of the type of work you are performing. There are important changes to laws affecting contracting and licensing that take effect in 2023 or complete implementation in 2023. Here are the three most critical changes contractors should be aware of and what they can do to prepare for them.
Read moreFlorida Court Affirms $525,000 Judgment In Favor of Unit Owner After Trial Over Cost-Plus Billing Issues
In a really thorough and well-written opinion, Florida’s Third District Court of Appeal affirmed a $525,000 judgment in favor of a condominium unit owner arising from dispute over billings in a cost plus contract. The case is a great example with lots of good warnings and takeaways for those in the construction industry of how broad ranging construction disputes can become, the issues they often turn on, and how important experts can be to the outcome of the case.
Read moreFlorida Court Clarifies When Contractor's Final Payment Affidavit Must be Delivered Pre-Suit
Florida’s construction lien laws require a contractor to serve a contractor’s final payment affidavit “at least five days” before filing a lawsuit to enforce the lien. A general contractor recently had its lien rights reinstated when a court clarified how the number of days between the service of the affidavit and the filing of the lawsuit should be calculated and reversed a dismissal of the contractor’s lawsuit.
Read moreFlorida Court Reinstates $4.8M Lien for Tenant Improvements on Public Property
A case decided last week illustrates the scope of liens for tenant improvements and recognizes that contractors can have liens for tenant improvements even where the land where the improvements are made is owned by a county or city.
Read moreNew Court Decision Requires Clerks to Record Liens When Document and Fees Received, Not When They Get To it Later.
Yesterday, Florida’s First District Court of Appeal affirmed a trial court ruling requiring a clerk to backdate the recording date of a construction lien to the date it was received and the recording costs paid, not the date the clerk actually got around to recording the lien. This decision will have a huge impact on recording liens in Florida and may help some contractors who have timely delivered liens to the clerk of court, only to have them still be recorded late.
Read moreFlorida Appellate Court Affirms $174,377.38 Construction Lien Claim In Favor of Interior Designer
Earlier this year, Florida’s Third District Court of Appeal affirmed a final judgment in favor of an interior designer who served as an owner’s representative and oversaw renovations at the owner’s condominium while he was out of the country. The appellate decision, and underlying trial court order, do a good job of showing how designers can distinguish themselves from contractors for the purpose of complying with licensing and construction lien laws.
Read moreRecent Court Decision Confirms Measure of Damages in Construction Cases and Awards Homeowner $40,850 Over Failure to Pull Proper Permits
Last week Florida’s Fourth District Court of Appeal issued an opinion the described and confirmed the ways breach of contract damages can be calculated in construction disputes and allowed termination of a contract for failure to pull proper permits. This case serves as a good reminder to do things the right way and has some great discussion of the type of information contractors should expect to provide in court over a payment dispute.
Read moreMiami Court Decides that Contractor Forfeits Lien for Failing to Include State and Local Contract Disclosures
Recently a Miami-Dade court entered judgment in favor of a property owner and dismissed a general contractor’s lien claim because the general contractor failed to include disclosures required under Florida state law and Miami-Dade county codes. The case is a reminder to periodically check your contracts to make sure they are compliant with the laws where you do business!
Read moreNTO Too Late: How to Lose a Lien in 45 days →
If you are part of the construction industry in Florida, no doubt you have at least heard of a Notice to Owner. You probably also know that you have a time limit to serve them and that they impact your ability to record a lien. While this general knowledge is a start, it is no substitute for knowing the actual requirements for an NTO and the consequences for failing to follow them.
Read moreAre You One of the Three Types of People/Companies that can File a Construction Lien in Florida?
Most contractors believe that their only claim for a lack of payment is to file a lien and that if the lien right expires they are out of luck for payment. While a lien is a powerful and important payment tool, it is only one of many available to contractors looking to be paid. In reality, a construction lien is a very unique and narrow remedy, only intended to be exercised by certain people or companies and only for certain amounts due to the person filing the lien. Are you one of those people?
Read moreConstruction Lien Waiver Provisions Contractors Should Be Using
It is common in construction for a subcontractor or material supplier of any tier to be required to provide a lien waiver when receiving payment. But not all lien waivers are created equal. While at a minimum, a lien waiver, by definition, needs to include a release of liens, it can also include many other terms that can tie up loose ends or resolve potential problems before they begin
Read moreHow to Avoid Personal Liability for a Fraudulent Lien
There are many benefits to using a corporation when operating a construction business. Avoiding personal liability for improper liens is just one of them.
Read more