Arbitration provisions are becoming more common in construction contracts, but a recent court decision reveals that enforcing these provisions requires more than just placing them in a contract. Contractors, especially those seeking to arbitrate claims involving multiple property owners or an entire homeowner or condominium association, must sufficiently establish that enough of the property owners agreed to arbitrate their claims.
Read moreCourt Reverses Worker's Compensation Coverage for Employee Driving HVAC Company Vehicle From Work
A recent decision by the First District Court of Appeal reversing worker’s compensation coverage for injuries sustained by an employee while driving a company vehicle for an HVAC company illustrates the challenges in determining when work begins and ends for employees who are allowed to take company vehicles home. While this case focuses on worker’s compensation claims, the principles can apply to wage, hour, and other labor and employment issues faced by construction companies.
Read moreNew Case Exposes the Risks of Relying on Text Messages to Alter or Create Contracts
In a recent real estate case, a court dismissed a lawsuit by a buyer to require the seller to sell him the property because the court found that the agreements between the parties contained in text messages and emails were unenforceable. This raises a significant concern over the enforceability of changes or amendments to construction contracts made by text or email, especially ones that will take a long time to perform.
Read moreCourt Orders Litigation of Florida Warranty Claims in New Jersey, Despite Project's Location in Florida
A decision this week from the Third District Court of Appeal serves as a reminder for why contractors need to be aware of all of the terms of the warranties they rely on and pass on to their customers.
Read moreRecent Court Decision Addresses Whether Failure to Obtain Local Licenses Renders Contracts Unenforceable
A recent decision from Florida’s Fourth District Court of Appeal addressed the issue of whether a subcontractor that failed to obtain local licenses required by a county ordinance was allowed to litigate claims for work that required those licenses. The case serves as another cautionary tale about the importance of complying with state licensing, local licensing, and contract requirements, and how all three can combine to make construction projects a complex compliance environment for contractors.
Read moreCourt Reverses Ruling In Favor of Landlord and Holds That Contractor's Lien for Tenant Improvements is Valid
In December, Florida’s Third District Court of Appeal reversed a judgment in favor of a landlord holding that a contractor’s lien could not attach to the real property being improvement by a tenant of the landlord. The reversal allowed the contractor’s lien enforcement claim to proceed.
Read moreCourt Affirms $638,000 Award for Improper Stoppage of Construction Contract by County
Last week, Florida’s Second District Court of Appeal affirmed a $638,794.10 award for damages in favor of a utility contract, and reversed an award of $177,750 in liquidated damages in favor of the county that hired it. The damages awarded arose from an improper stoppage of work and delay in construction by the county.
Read moreTwo Proposed Florida Statutes Would Remove Fire Marshal or Building Official Discretion to Change Building Plans During Permit Review
Proposed Senate Bills 976 and 1020 both would add language to Chapter 553, Florida Statutes, that limits the ability of fire marshals or building officials to make discretionary changes to plans as part of the permitting process.
Read moreCourt Imposes $71,444 Judgment on Fence Company For Failure to Timely Complete Project
A case decided yesterday by Florida’s First District Court of Appeal imposed a $71,444 judgment on a fence company for failing to complete a project under the terms of the original contract and then the terms of an agreed understanding between the parties on the completion date.
Read moreCourt Reverses $28,190.00 Judgement Against Flooring Company Owner Over Improper Corporate Veil Piercing
Yesterday a Florida court reversed a judgment entered against the owner of a flooring company individually because even though he had commingled personal and business funds, he had not engaged in conduct that warranted setting aside the company and imposing liability on him personally.
Read moreProposed Florida Statute Would Change Notice to Contract and Notice of Non-Payment Requirements for Public Works Contracts
Proposed House Bill 345, in addition to make sweeping changes to Florida’s Construction Lien law, would also make changes to portions of Chapter 255 and 337, Florida Statutes, which govern public projects and construction or maintenance contracts, and Chapter 95, Florida Statutes, which sets forth the statutes of limitations for lawsuits in Florida.
Read moreProposed Statute Would Make Significant Changes to Florida's Construction Lien Law
Florida House Bill 345, would make changes to 16 different sections of Part I, Chapter 713, Florida Statutes, including alterations of the definitions of contractor and final furnishing, changes to who is required to be listed on a notice of commencement, and changes to the statute governing service of notices to owner, liens, and other documents.
Read moreProposed Florida Statute Would Eliminate 10-Year Bar on Construction Defect Claims and Impose New Pre-Suit Requirements for Defect Claims
Proposed Florida Senate Bill 736 would eliminate the 10-year statute of repose for latent construction defects and make significant changes to Chapter 558, Florida Statutes, including awarding attorneys’ fees for rejecting settlement offers and requiring courts to appoint construction experts to inspect defects.
Read moreFlorida Legislature Again Considering Removing Licensing Requirement for Certain Supervised Pool Construction
Under proposed House Bill 267, unlicensed contractors would be allowed to perform the work of a commercial or residential pool/spa contractor, or a swimming pool/spa servicing contractor, so long as he or she is supervised by a contractor holding one of those licenses. A similar statute proposed last year did not make it out of the Community Affairs Committee.
Read moreProposed Florida Statute Would Eliminate Notice of Commencement Requirement for Certain HVAC Jobs Under $15,000.00
Proposed Florida Senate Bill 352 would remove the requirement for a notice of commencement to be recorded on HVAC contracts directly with homeowners that total less than $15,000.00. The current statute eliminates the need for a notice of commencement on direct HVAC contract of less than $7,500.00.
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 moreCourt Determines Subcontractor Not Entitled to Retainage or Change Orders Due to Failure to Follow Contract and Act Within Deadlines
A recent court decision involving a public construction project for the Miami-Dade County School District confirms that change orders must conform to the terms of the contract to be enforceable and that the deadline to bring claims relating to a public project is one year from completion.
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 moreRecent Court Decision Describes Additional Way Contractors Can Appeal Penalties from DBPR
A recent court decision describes how a licensed contractor in Florida can have a punishment imposed without a hearing by the DBPR reversed and re-examined, particularly where the contractor challenges whether he or she received proper notice. The opinion also describes the steps required to establish proper service by the DBPR on a contract.
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.
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