Recent Florida Legislative Changes Shorten Both Statute of Limitation ("SOL") and Statute of Repose ("SOR") for Construction Defect Claims
March 19, 2024 —
Holly A. Rice - Saxe Doernberger & Vita, P.C.The Florida Legislature and Governor DeSantis passed Senate Bill 360, effective April 13, 2023, which imposes significant changes to Florida’s statute of limitation (“SOL”) and statute of repose (“SOR”) periods prescribed in Florida Statute § 95.11. In short, the SOL and SOR periods will commence earlier and run earlier, which in effect shortens the time to bring a construction defect claim on both ends of the timeline.1
These changes will have positive impacts for general contractors who may save on insurance premiums with shorter completed operations tails. In other words, the timeframe within which contractors are at risk of being sued for construction-related errors is significantly reduced under the new version of the statute. Owners and developers, on the other hand, may feel that the increased pressure of uncovered construction defects necessitates the filing of lawsuits sooner than they might have otherwise filed. Collectively, all parties involved will certainly have to consider when and how to place their carriers on notice of claims or potential claims and, coupled with Florida’s sweeping changes to fee shifting statutes, insured parties may see more coverage denials which, in turn, could lead to more coverage actions.2
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Holly A. Rice, Saxe Doernberger & Vita, P.C.Ms. Rice may be contacted at
HRice@sdvlaw.com
Committeewoman Requests Refund on Attorney Fees after Failed Legal Efforts
February 10, 2014 —
Beverley BevenFlorez-CDJ STAFFWest Deptford, New Jersey township redevelopment counsel Mark Cimino had spent a year arguing that the city should receive a $4 million reduction in construction costs due to “inadequate documentation provided by the bank, as well as receipts showing disbursement had ‘improperly’ been made toward uses other than construction,” according to a December 30th 2013 article in the South Jersey Times. However, a state appellate court upheld the ruling that “the township had no basis” to request the reduction.
Now, Committeewoman Denice DiCarlo is “seeking a $10,000 refund on the attorney fees paid” to Cimino, the South Jersey Times reported on February 6th. “This entire matter has been a monumental waste of tax dollars, and I am angry that the entire township committee was misled by Mr. Cimino and induced to believe we had any reasonable chance of recovering loan proceeds from this lawsuit,” DiCarlo stated in a letter to Mayor Raymond Chintall.
Not all committee members agree with DiCarlo. Committeeman Sam Cianfarini told South Jersey Times that “he still believed Fulton Bank owed it to West Deptford to answer for any funds put toward anything other than construction.”
Cimino declared “that both the lawsuit and appeal were valid,” according to the February 6th article. He “accused DiCarlo of ‘playing politics.’”
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Second Circuit Court Differentiates the Standard for Determining Evident Partiality for a Neutral Arbitrator and a Party-Appointed Arbitrator
August 07, 2018 —
Celia B. Waters - Saxe Doernberger & Vita, P.C.On June 7, 2018, the Second Circuit Court in Certain Underwriting Members of Lloyds of London v. Fla., Dep’t of Fin. Servs.,1 held that a party-appointed arbitrator should not be held to the same standard as a neutral arbitrator. The Court vacated a district court’s order vacating an arbitral award in a reinsurance dispute between Insurance Company of Americas (“ICA”) and Certain Underwriting Members of Lloyds of London (“Underwriters”). The case was one of first impression for the Second Circuit on how to determine the standard of evident partiality challenged to a party-appointed arbitrator.
Underwriters reinsured ICA under a series of treaties. The treaties each contained an arbitration clause requiring that disputes be adjudicated by an arbitration panel consisting of three members: one party-appointed arbitrator for each party, and a neutral. The clause required only that the arbitrators “be active or retired disinterested executive officers of insurance or reinsurance companies or Lloyd’s London Underwriters.”
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Celia B. Waters, Saxe Doernberger & Vita, P.C.Ms. Waters may be contacted at
cbw@sdvlaw.com
FEMA Offers Recovery Tips for California Wildfire Survivors
January 14, 2025 —
FEMAWASHINGTON -- While fire suppression activities are still ongoing in parts of Southern California, affected individuals and families are taking steps toward recovery.
FEMA is helping people jumpstart their recovery. You may be eligible for FEMA assistance, even if you have insurance. More than $5.3 million so far are in the hands of survivors to help pay for emergency supplies like food, water and baby formula as well as to replace personal property and pay for a temporary place to stay. Below are tips to help Californians recover from the historic wildfires.
If your primary home was affected by the fires, FEMA may be able to help you cover certain costs – like paying for essential items, finding a place to stay, replacing personal property or making basic repairs to your home. However, FEMA assistance is designed to help you if you do not have insurance or if your insurance policies don't cover basic needs. If you have insurance, you should file a claim as soon as possible and be ready to provide your coverage information when applying to FEMA.
There are several ways to apply for FEMA assistance:
To view an accessible video about how to apply visit:
FEMA Accessible: Registering for Individual Assistance or
en Español.
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Building Materials Price Increase Clause for Contractors and Subcontractors – Three Options
June 21, 2021 —
William L. Porter - Porter Law GroupWith the arrival of inflation come concerns regarding increases in the price of building materials within the construction industry. Contractors, subcontractors and others who contract to perform construction work can suffer significant losses when the prices they must pay for materials rises significantly between the time they sign the contract and actually purchase the materials. The general rule is that, unless there exists a contract clause allowing contractors or subcontractors to pass significant price increases for materials on to others, contractors and subcontractors are stuck with the price stated in the contract or subcontract. When prices rise, the contractor or subcontractor eats the difference. Rising prices can thus turn a profitable project into a catastrophic failure. How are contractors and subcontractors to protect themselves?
Once a contract is executed, there is usually little that can be done to change the document to address rising prices. Effort must therefore turn to future protection. The best technique for dealing with increasing future prices for building materials is by adding a price escalation clause to contracts and subcontracts. While this will not help for past contracts or subcontracts, it can certainly offer significant protection going forward.
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William L. Porter, Porter Law GroupMr. Porter may be contacted at
bporter@porterlaw.com
Charlotte, NC Homebuilder Accused of Bilking Money from Buyers
April 01, 2015 —
Beverley BevenFlorez-CDJ STAFFThe Charlotte Observer reported that a homebuilder couple “was arrested Tuesday on charges alleging that they kept more than $600,000 three families paid them to build Lake Wylie homes that were never completed.”
Robert Scott Kuhlkin and wife, Sherry Lynn Kuhlkin “accepted $189,000 from one family, $239,000 from another family, and $233,000 from a third family to build houses, 16th Circuit assistant solicitor Matthew Hogge said in court, but instead they ‘took the money for themselves.’”
The alleged victims told the court that the homes had defects or were left unfinished.
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Fourth Circuit Rejects Application of Wrap-Up Exclusion to Additional Insured
December 11, 2018 —
K. Alexandra Byrd & Samantha M. Oliveira - Saxe Doernberger & Vita, P.C.Utilizing an owner-controlled or contractor-controlled insurance program (collectively known as “wrap-ups”) can reduce claims, save costs, and give owners and general contractors comfort in knowing their project is adequately insured. However, problems often arise when a subcontractor doesn’t enroll in the wrap-up and, instead, agrees to provide additional insured coverage to the owner and general contractor on the subcontractor’s own general liability policy. One of those problems is the prevalence of wrap-up exclusions on subcontractors’ general liability policies. If the wrap-up exclusion is too broadly drafted, the exclusion can eliminate coverage for the general contractor and owner even when the subcontractor is not enrolled in the wrap-up.
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K. Alexandra Byrd, Saxe Doernberger & Vita, P.C. and
Samantha M. Oliveira, Saxe Doernberger & Vita, P.C.
Ms. Byrd may be contacted at kab@sdvlaw.com
Mr. Oliveira may be contacted at smm@sdvlaw.com
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Now Available: Seyfarth’s 50 State Lien Law Notice Requirements Guide (2023-2024 Edition)
December 23, 2023 —
Seyfarth Shaw LLPSeyfarth’s Construction team is pleased to announce the release of our 2023-2024 edition of the 50 State Lien Law Notice Requirements Guide. The Guide provides the general time requirements for filing lien notices in each state, plus Washington, DC.
Reprinted courtesy of
Seyfarth Shaw LLP
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