Last week Florida’s Fourth District Court of Appeal affirmed the dismissal of a lawsuit filed by a mold remediation contractor, finding that the standard price list attached to the contract failed to meet the requirements for a “written, itemized, per-unit cost estimate of the services to be performed” required under Florida’s assignment of benefits statute. The decision is another cautionary tale to contractors in the disaster recovery business about risks of non-compliance with the statute.
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 Relaxes Two Licensing Requirements to Help Hurricane Ian Recovery Efforts
On October 1st, Governor Desantis issued Emergency Order 2022-03, which temporarily alters the requirements of 489.113(3), Florida Statutes, and 489.117, Florida Statutes, to make it easier for roofing work to be performed by certain contractors that are already licensed by the state of Florida. The order also makes clear that the installation of non-permanent, emergency tarps falls within the exemptions to Florida’s contractor licensing statute. These provisions only apply to certain counties in Florida.
Read moreFlorida Court Reverses $105,000 Judgment in Favor of Site Development Contractor Over Scope of Work Issues
Florida’s Second District Court of Appeal recently reversed a $105,000 verdict in favor of a site development contractor, holding that the unpaid invoices did not arise under the contract. The case illustrates the importance of getting written change orders and choosing claims carefully, because, critically, there did not appear to be any dispute over the performance or quality of the work.
Read moreFlorida Court Affirms Dismissal of Company's Lawsuit For Failing to Comply with Assignment of Benefits Statute Despite Contract Language Disclaiming Application of Statute.
Recently Florida’s Second District Court of Appeal concluded that an assignment of benefits agreement executed in conjunction with indoor environmental and air quality testing services fit within Florida’s Assignment of Benefits Statute despite the services not directly involving physical protection, repairs, or restoration. This resulted in a dismissal of the air quality companies lawsuit against the the insurance carrier, and illustrates how broadly courts are interpreting 627.7152, Florida Statutes, and how careful restoration companies and their affiliates must be in complying with its terms.
Read moreCourt Concludes Acceptance of Partial Payment Sent With Report Indicating it was Final Barred Future Claims for Payment
Florida’s Fourth District Court of Appeal recently concluded that construction manager who accepted a payment for less than the total of his final invoices that was accompanied by a reconciliation report offering it as final payment was barred under both the language of the contract and common law from seeking any further payment. The case is a cautionary tale for contractors dealing with payment issues at the end of any project.
Read moreCourt Holds that General Contractor Cannot Delegate Duty to Ensure Compliance with Building Code to Subcontractors
Florida’s 18th Judicial Circuit Court recently granted a motion for summary judgment in favor of a homeowner’s association, concluding that a general contractor who constructed 314 town homes was liable for the building code violations of its subcontractors on the project and could not delegate responsibility directly to them.
Read moreCourt Holds Second Roofing Contractor Did Not Interfere with First Roofing Contractor's Contract By Submitting Bid for Same Work
At the end of July, the 11th Circuit Court of Appeals affirmed the dismissal of a roofing contractor’s complaint against another roofing contractor for allegedly interfering with its contract with a condominium association for roof repairs relating to Hurricane Irma. The case illustrates the importance of timing and advancing work related to insurance claims and should serve as a warning to those that regularly wait on insurance payments before beginning work.
Read moreCourt Refuses to Enforce Assignment of Benefits; Finds Contractor's Invoice Does Not Satisfy Itemized Estimate Requirements
Today, Florida’s Fourth District Court of Appeal affirmed the dismissal of a contractor’s breach of contract claim against an insurance carrier, finding that the contractor’s invoice attached to the assignment of benefits contract did not meet the requirements of Florida’s relatively new assignment of benefits statute. The ruling is a cautionary tale for contractors that rely on assignments of benefits to receive payment from insurance carriers to make sure their documentation strictly complies with the statutory requirements.
Read moreThree New Statutes that Take Effect July 1, 2022
Last week, Florida’s governor signed multiple bills in addition to insurance and condominium inspection reform, which will take effect July 1, 2022. Three of these new statutes impact notices of commencement for certain HVAC projects, licensing and permitting requirements for fire alarm system projects, and allowing certain pool work without a license, but with the supervision of a licensed contractor.
Read moreNew Florida Statute Changes Building Code Requirements for Roof Repairs
Much of the attention today has been on Florida’s Governor Ron DeSantis’ signing of extensive property insurance law changes in Florida. But today the governor also signed Senate Bill 4. While SB 4 primarily deals with condominium inspections and safety, the bill also changes part of the state law that enacts and governs Florida’s Building Code and changes the amount of a roof that must be brought up to current codes in the event of damage and repair.
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 moreCourt Holds Contractors Must Provide Sufficient Proof to Compel Association Claims to Arbitration
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.
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