Court Determines Contractor’s Company is Unlicensed Despite Owner being Licensed
This case from Florida’s Fifth District Court of Appeal thoroughly evaluates the licensing requirements for business engaged in contracting in Florida and concludes that it is not sufficient for an owner of the company to have a license. The license holder must also formally become the qualifying agent for the company. In this case, the lack of proper licensure resulted in the contractor’s contract for a new home being declared unenforceable.
Court Reverses $85,000.00 Attorneys’ Fee Award in Construction Lien Case After Applying Significant Issues Test Despite Award to Contractor
This case from Florida’s Second District Court of Appeal arises from a dispute over hours charged by a staffing company and a related charge of less than $3,000.00. After having its fraudulent lien claim dismissed during trial, the property owner appealed, having that ruling reversed, only to have the trial court’s ruling in favor of the staffing company on its good-faith-dispute defense save the staffing company. The appellate court also found that the trial court applied the wrong test in awarding attorneys’ fees and reversed an award of $85,000.00 in attorneys’ fees to the staffing company.
Eleventh Circuit Court of Appeals Reverses Dismissal of Pro Se Claims Against Cabinet Contractor, Allowing Punitive Damages Claims to Stand
A dispute over $2,500.00 in overlooked soft-close cabinet drawers, quickly escalates into claims over fraudulent Google reviews, a federal lawsuit, and over $500,000.00 in damages.
Court Reverses Judgment in Favor of Contractor After Determining Contractor Was Unlicensed.
This case from Florida’s Third District Court of Appeal addresses Florida’s statute declaring that contracts entered into by unlicensed contractors are unenforceable.
Court Refuses to Increase Lien Transfer Deposit Amount in Unconsolidated Cases
Florida’s Third District Court of Appeal recently declined to reverse a trial court’s refusal to increase the amount a construction lien transfer deposit and the trial court’s related discharge of a lis pendens. The decision seems to rest, at least in part, on the fact that the lien foreclosure action and related breach of contract claims were progressing in two separate, unconsolidated cases.
Court Determines General Contractor Entitled to Attorneys' Fees Award Against Subcontractor Despite Jury Apportionment of Damages
Florida’s First District Court of Appeal recently reversed a trial court’s denial of a general contractor’s motion for attorneys’ fees filed against a stucco subcontractor, finding that the apportionment of damages in primary claims between the property owner and general contractor should have no bearing on the prevailing party status of the general contractor on third-party claims against subcontractors.
Court Reverses Leave to Assert Punitive Damages Against Road Contractor Over Improper Use of Property as a Staging Area
Florida’s Third DCA reversed a trial court’s ruling that a property owner could seek punitive damages from a roadway contractor that improperly used the owner’s property as a staging area for construction. While the trial court found that the contractor had acted intentionally, the appellate court noted that to pursue punitive damages against a corporate entity, additional evidence of corporate involvement needed to be presented and was not.
Architect's Claims for Breach of Contract and Copyright Infringement Reinstated Due to Factual Issues over Termination
11th Circuit court of appeal reverses dismissal with prejudice of breach of contract and copyright claims asserted by architect, finding that factual issues surrounding the basis for termination preclude disposition of the claims on a motion to dismiss. The court found this to be the case despite the existence of a termination for convenience provision in the contract.
Court Reinstates Contractor's Lien After Holding that Claimed Local Licensing Violations Do Not Necessarily Fall Under 489.128, Florida Statutes
Florida’s Fourth District Court of Appeal reinstated a contractor’s construction lien after finding that alleged unlicensed contracting in violation of local ordinances did not trigger the application of 489.128, Florida Statute. The court does a good job of outlining the differences between state and local licensing laws and the penalties and scope of enforcement available at the state and local level.
Court Confirms that Electrical Contractors can Perform Excavation As Part of Their License Without Also Being Licensed Underground Utility Contractors
This case from Florida’s Fourth District Court of Appeal addresses the issue of whether an electrical contractor can contractor for work that includes the scope of work typically reserved to licensed underground utility and excavation contractors.
Appellate Court Affirms Dismissal of Roofer's Lawsuit Based on Non-Compliant Assignment of Benefits
Florida’s Second District Court of Appeal affirmed dismissal of a lawsuit brought by a roofing contractor against an insurance carrier on behalf of an insured, finding that the assignment of benefits contract between the contractor and insured did not strictly comply with the requirements of section 627.7152, Florida Statutes.
Two 4th Circuit Orders Grant Summary Judgment Finding that General Contractors Have Non-Delegable Duty to Ensure Construction Complies with Florida Building Code
The orders found that, as a matter of law, the two general contractors in those cases had a duty to supervise, direct, manage, and control the work to ensure compliance with the Florida Building Code, and that such duty could not be delegated to subcontractors or other parties working on the project. The impact of the decisions appears to limit the relevant general contractors’ ability to require liability to be apportioned between various subcontractors.
Florida 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.
Court 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.
Recent 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.