A proposed statute would start the running of the statute of limitations for construction defect claims earlier, shorten the statute of repose to 7 years, and require each unit in a multi-dwelling building to be treated as its own dwelling for statute of limitations and repose purposes.
House Bill 85 would alter 95.11, Florida Statutes, to change the type of activities that start the running of Florida’s statute of limitations on construction defect claims and to shorten the statute of repose that sets the furthest point in time when a claim can be brought. As an initial matter, under the proposed changes, the statute of limitations for an action founded on design, planning, or construction of an improvement to real property remains four years. But, the proposed amendment adds that this four year period can start at the issuance of a temporary certificate of occupancy, and removes “actual possession by the owner” as a possible start date for this period. The full change is shown below:
with the time running from the date of actual possession by the owner, the date of the issuance of a temporary certificate of occupancy, the date of the issuance of a certificate of occupancy, the date of the issuance of a certificate of completion, the date of abandonment of construction if not completed, or the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is earliest latest; except that, when the action involves a latent defect, the time runs from the time the defect is discovered or should have been discovered with the exercise of due diligence.
The time also starts running from the earliest of these dates, as opposed to the latest, except when the claims involve a latent defect.
The statute of repose is shortened from 10 years to 7 years, with the following changes made to the statute:
In any event, the action must be commenced within 7 10 years after the date of actual possession by the owner, the date of the issuance of a temporary certificate of occupancy, the date of the issuance of a certificate of occupancy, or the date of the issuance of a certificate of completion, whichever date is earliest. If a temporary certificate of occupancy, a certificate of occupancy, or a certificate of completion has not been issued, the action must be commenced within 7 years after the date of abandonment of construction if not completed, or the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is earliest latest.
New language is also added relating to multifamily projects as follows:
5. Notwithstanding any provision of this section to the contrary, each dwelling within a multi-dwelling building must be considered its own improvement for purposes of determining the limitations period set forth in this paragraph.
You can click here to read the proposed bill in its entirety.