Florida Construction Lawyer Blog

A recent construction lien claim and appeal that we handled on behalf of Miami-based CDC Builders, Inc. against developer Riviera Almeria, LLC led to a reversal of the lower court's decision that would have discharged CDC's construction liens over two stalled Coral Gables custom home projects. The appellate court's ruling in the case overruled the trial court's interpretation and application of Chapter 713 of the Florida Statutes wherein the trial court incorrectly discharged and invalidated CDC's construction liens against the developers due to the trial court's finding that the contractor's interim payment requests were inaccurate.

The appellate ruling, which has significant implications for many other contractor lawsuits and construction liens, was the subject of a report in the Thursday, December 9, edition of the Daily Business Review. The article quoted 3rd District Court of Appeal Chief Judge Juan Ramirez who wrote that the Miami-Dade Circuit Court's ruling in this case would have "a deleterious impact . . . on the construction industry as a whole. If we agree with the trial court, the purpose of liens would be undercut. Liens could be subject to attack for inaccuracies or simple mathematical errors. That was not what the Florida Legislature intended when it enacted the construction lien law."

The article further explains:

"Miami-Dade Circuit Judge Gill Freeman granted the developer's motion for partial summary judgment and discharged the lien, ruling that CDC had wrongly filed false interim payment applications because it had withheld subcontractor money.

The 3rd DCA panel ruled that Freeman should not have discharged the lien because CDC was adhering to its contract with Riviera.

'Not only was CDC Builders allowed to withhold a retainage, it was contractually required to do so,' Ramirez wrote.

The opinion also pointed to state law, which 'does not prevent any person from withholding any payment, or any part of a payment . . . if there is a bona fide dispute regarding the amount due.'

The court added that 'to agree with the trial court's application of the statute would mean that otherwise valid liens would violate the lien law.'"

We were very pleased to have helped our client prevail in this appeal, and we believe the reversal of the trial court's decision in this case is going to have a positive impact for many of the contractors which have filed construction lien claims in the state. The South Florida construction law attorneys at our firm will continue to write about important cases and rulings in the state's courts, and we encourage those who are interested in our analysis and insights to add their e-mail address to the subscription box at the top of the column on the right in order to automatically receive all of our future blog posts.

Last week in our community association blog I wrote about how a recent decision by a Florida appellate court in the case of Lakeview Reserve Homeowners v. Maronda Homes, Inc. 35 Fla. L. Weekly D2413 (Fla. 5th DCA 2010) has far-reaching implications for homeowners associations in construction defect disputes with developers. In its ruling, the Fifth District Court of Appeal court has broadened the implied warranty of fitness and merchantability granted to purchasers of new homes to include structures in common areas of a subdivision that immediately support the residence in the form of essential services. To learn more about this case and how it will further enable community association and construction defect lawyers in Florida to protect consumers who rely on the expertise of the developer for the proper construction of their new home, click here to read the full post.

Construction defect lawsuits against developers and their contractors can become very complicated and prolonged, and our recent $9 million settlement on behalf of the condominium association for the Continuum on South Beach illustrates the complex nature of this litigation for attorneys who focus on construction law.

The Continuum settlement came after more than six years of litigation, and the case had grown so large and complex that if first caught the attention of the editors of the Daily Business Review when they covered it in lengthy report entitled "South Florida Cases Show How Defect Lawsuits Multiply" in April of 2009.

The case took another 18 months to reach its conclusion, and when it did the Daily Business Review decided to share the details with its readers in a report on Tuesday, Nov. 30, which read:

A messy, 6-year-old battle over construction defects at a Miami Beach condo tower is drawing to a pricey conclusion.

The insurer for the developer and contractors of the Continuum on South Beach and the condo association of the 314-unit South Tower have reached a $9 million settlement. The deal is to be submitted to Miami-Dade Circuit Judge Gill Freeman by Wednesday. Once she signs off on the settlement, the costly repairs can begin, ending the dispute that dates to 2004.

The Continuum on South Beach and the South Tower Condominium Association sued developer South Beach Ocean Parcel, managed by Ian Bruce Eichner; the architecture firm Fullerton Diaz Architects; and several subcontractors.

The suit claimed design and construction defects led to leaky windows that damaged stucco, drywall and flooring in portions of the 40-story tower. The condo association also accused Eichner and the developer of misrepresenting the project's amenities, a violation of the state Deceptive and Unfair Trade Practices Act.

The trial was scheduled to begin on Nov. 8, but a tentative settlement in September put that on hold.

This settlement could not have been achieved without the focused efforts of my partner, Steven M. Siegfried, Esq., our dedicated staff and the contributions of our co-counsel, David B. Haber.

Because these types of cases become very complex and time consuming as developers file their own subsequent lawsuits against subcontractors, it is imperative to work exclusively with lawyers who focus on construction defect lawsuits. We have represented hundreds of property owners and community associations in construction defect claims since our inception in 1977, and our experience and capabilities enables us to achieve favorable outcomes.