Five-Year Statute of Limitations on Performance-Type Surety Bonds
December 01, 2017 —
David Adelstein - Florida Construction Legal UpdatesThe statute of limitations on a claim against a performance-type bond is 5 years from the breach of the bond, i.e., the bond-principal’s default (based on the same statute of limitations that governs written contracts / obligations). See Fla. Stat. s. 95.11(2)(b). This 5-year statute of limitations is NOT extended and does NOT commence when the surety denies the claim. It commences upon the default of the bond-principal, which would be the act constituting the breach of the bond. This does not mean that the statute of limitations starts when a latent defect is discovered. This is not the case. In dealing with a completed project, the five-year statute of limitations would run when the obligee (beneficiary of the bond) accepted the work. See Federal Insurance Co. v. Southwest Florida Retirement Center, Inc., 707 So.2d 1119, 1121-22 (Fla. 1998).
This 5-year statute of limitations on performance-type surety bonds has recently been explained by the Second District in Lexicon Ins. Co. v. City of Cape Coral, Florida, 42 Fla. L. Weekly D2521a (Fla. 2d DCA 2017), a case where a developer planned on developing a single-family subdivision.
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David Adelstein, Florida Construction Legal UpdatesMr. Adelstein may be contacted at
dadelstein@gmail.com
Loose Bolts Led to Sagging Roof in Construction Defect Claim
February 10, 2012 —
CDJ STAFFThough the sagging roof is neither leaking nor a safety hazard, the town of Waynesville, North Carolina is suing the builder of its new fire station, as reported in the Smoky Mountain News. The engineers who examined the roof found a substantial number of loose bolts in the roof trusses. Additionally, the trusses themselves have become bent.
Tom Galloway, Waynesville’s Town Manager said “it needs to be remedied and fixed.” He said that the builder, Construction Logic, “never indicated a willingness to fix the roof.” The town is seeking the cost of repair, which Galloway estimated could be $400,000, and an additional $30,000 in damages. The suit states that Construction Logic failed to follow the plan specifications for the roof.
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5 Ways Equipment Financing is Empowering Small Construction Businesses
August 24, 2017 —
Duane Craig - Construction InformerSmall construction businesses can often get 100% equipment financing, eliminating the down payment, and freeing up cash, according to the Equipment Leasing and Finance Association (ELFA).
Most small businesses need equipment in order to operate and grow, and each business must decide on an acquisition strategy that is right for it. But, a majority of businesses turn to equipment leasing and financing so they can take advantage of a range of benefits.
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Duane Craig, Construction InformerMr. Craig may be contacted at
dtcraig@constructioninformer.com
Texas Supreme Court Declines to Waive Sovereign Immunity in Premises Defect Case
April 10, 2023 —
Starr M. Forster - Lewis BrisboisHouston, Texas (March 30, 2023) – The Supreme Court of Texas recently upheld a Thirteenth Court of Appeals’ judgment finding that the plaintiffs in a premises defect case brought against the Texas Department of Transportation (TxDOT) had failed to raise a fact issue regarding the creation of a dangerous condition and, consequently, failed to establish waiver of the defendant’s sovereign immunity.
Daniel K. Christ and Nicole D. Salinas v. Tex. DOT, et al., No. 21-0728, 66 Tex. Sup. Ct. J. 306, 2023 Tex. LEXIS 128, at *1 (Feb 10, 2023).
Background
Plaintiffs Daniel Christ and his wife, Nicole Salinas (the Christs), were riding their motorcycle through a construction zone when they collided with a vehicle that crossed into their lane. TxDOT’s traffic control plan for the related construction project called for the placement of concrete barriers between opposing travel lanes; however, once construction on the project began, TxDOT’s contractor determined there was not enough space for the concrete barriers and revised the traffic control plan to substitute yellow stripes and buttons for the concrete barriers. TxDOT never approved the revised traffic control plan in writing; however, TxDOT’s contractor contended TxDOT orally approved of the change. The Christs sued the driver of the other vehicle, TxDOT, and TxDOT’s contractor.
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Starr M. Forster, Lewis BrisboisMs. Forster may be contacted at
Starr.Forster@lewisbrisbois.com
Construction Lien Does Not Include Late Fees Separate From Interest
December 30, 2019 —
David Adelstein - Florida Construction Legal UpdatesConstruction liens can include unpaid finance charges. But, what about late fees? You know, the late fees that certain vendors like to include in their contract or purchase order unrelated to finance charges. An added cost for being delinquent with your payment. Can a late fee be tacked onto the lien too?
In a recent case, Fernandez v. Manning Building Supplies, Inc., 2019 WL 4655988 (Fla. 1st DCA 2019), a residential owner hired a contractor for a renovation job. The contractor entered into a contract with a material supplier. The terms of the supplier’s contract with the contractor provided that there would be a 1.5% delinquency charge for late payments and it seemed apparent that the delinquency charge was separate from finance charges.
Florida Statute s. 713.06(1) provides in relevant portion:
A materialman or laborer, either of whom is not in privity with the owner, or a subcontractor or sub-subcontractor who complies with the provisions of this part and is subject to the limitations thereof, has a lien on the real property improved for any money that is owed to him or her for labor, services, or materials furnished in accordance with his or her contract and with the direct contract and for any unpaid finance charges due under the lienor’s contract.
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David Adelstein, Kirwin Norris, P.A.Mr. Adelstein may be contacted at
dma@kirwinnorris.com
Balcony Collapses Killing Six People
June 17, 2015 —
Beverley BevenFlorez-CDJ STAFFSix college students died from injuries that occurred when a balcony collapsed at a downtown apartment complex in Berkeley, California, according to Berkeleyside. The city of Berkeley ordered a structural inspection of the remaining balconies at Library Gardens, and to immediately remove the failed balcony.
The following day Berkeleyside reported that the city ordered the Library Gardens’ owners to remove another balcony after “[i]nspectors determined that the third-floor balcony ‘was structurally unsafe and presented a collapse hazard endangering public safety.’”
Berkeley’s mayor, Tom Bates, stated that “investigators believe the wood wasn’t sealed properly at the time of construction and was damaged by moisture as a result,” the Wall Street Journal reported.
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A Court-Side Seat: Clean Air, Clean Water, Citizen Suits and the Summer of 2022
November 01, 2022 —
Anthony B. Cavender - Gravel2GavelThis is a selection of significant environmental and regulatory law cases decided by the federal courts after the Supreme Court’s 2021 Term concluded.
The U.S. Court of Appeals for the DC Circuit
National Association of Broadcasters v. Federal Communications Commission
On July 12, 2022, the DC Circuit held that an order of the FCC requiring radio broadcasters to follow a prescribed five-step process to verify the identity of program sponsors was not authorized by the Communications Act. According to the court, the FCC “decreed a duty that the statute does not require, and that the statute does not empower the FCC to impose.” Here, the agency failed to identify the statutory authority it needed to authorize the issuance of such an order. While certainly not as significant as the Supreme Court’s ruling in West Virginia v. EPA, decided only a few days before this decision was released, it is a strong reminder that the courts want to know if a challenged rule is authorized by law.
Humane Society of the U.S., et al., v. U.S. Department of Agriculture
On July 22, 2022, the court decided a case involving the steps the Administrative Procedure Act and the Federal Register Act require to be taken before a final agency rule is legally promulgated. Customarily, when there has been a change in Presidential administrations, the incoming administration “quietly” withdraws rules awaiting Federal Register publication without much ceremony. The majority of this panel agreed that public notice should have been provided to the regulated community to comment on the new administration’s action to pull back a new rule which had been made available for public inspection before Federal Register publication that would have strengthened the protections afforded “show horses,” as now required by law. The court noted that “it seems clear that filing with the Federal Register constituted promulgation of a regulation even though publication may not occur until a later date.” Circuit Judge Rao filed a strong dissent. “By cutting off agency discretion at public inspection, the majority imposes judicial burden on agency procedures that conflicts with circuit precedent, the statutory framework and a longstanding regulation permitting withdrawals prior to publication.” There could be a further review of this unique ruling.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
A Primer on Suspension and Debarment for Federal Construction Projects
August 10, 2020 —
Hal J. Perloff - Construction ExecutiveWe’ve all heard the expression that those who deal with the government must turn square corners. This is because the government has a broad array of tools at its disposal to motivate, coax and cajole contractors and federal grant recipients to play by the rules. Those tools include harsh measures such as criminal prosecution and civil false claims act enforcement on the one hand and poor CPARS ratings on the other. A seemingly less severe administrative option available to the government is suspension and debarment. However, any entity that has been suspended or debarred knows that these measures can prove harsh and disruptive.
While the numbers of suspensions and debarments have declined from the all-time high in 2011, there is still significant activity. In its FY 2018 report, the Interagency Suspension and Debarment Committee reported 2444 referrals, 480 suspensions, 1542 proposed debarments and 1334 debarments. The number of referrals for suspension and debarment in FY 2018 is almost exactly the same as the number of GAO bid protests filed that year.
WHAT IS SUSPENSION AND DEBARMENT?
Suspension and debarment are the government’s tools to avoid entities it views as a high risk for poor performance, fraud, waste and abuse. Suspension and debarment preclude a business entity or individual from contracting with the government or from receiving grants, loans, loan guarantees or other forms of assistance from the government. A suspension is a temporary exclusion when the government determines immediate action is necessary pending the completion of an investigation or legal proceeding. A debarment is an exclusion for a defined, reasonable period of time—often three years.
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Hal J. Perloff, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Perloff may be contacted at
hal.perloff@huschblackwell.com