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susanodess-srhl-224x300LindseyTLehr-200x300An article authored by shareholders Lindsey Thurswell Lehr and Susan C. Odess was featured as the “My View” guest commentary column in the Business Monday section of today’s Miami Herald.  The article, which is titled “Lawsuits by Condo Associations Against Neighboring Developers, Builders Are New Norm,” focuses on the spate of recent lawsuits against South Florida condominium developers and general contractors alleging their construction work caused physical damage to neighboring condominium towers.  Their article reads:

. . . This new litigation trend appears to have especially taken hold in South Florida, where several prominent condominium developers and contractors have been sued by adjacent associations for damages emanating from their construction sites. The lawsuits raise claims for structural damage, fallen stucco, splattered paint, excessive dirt, broken glass/windows, and other damage resulting from the construction practices of neighboring developments.

The insurer for the 1060 Brickell Condominium Towers brought a lawsuit alleging construction debris from Panorama, 1010 Brickell and the Bond damaged the two 1060 Brickell buildings. The lawsuit claims that the construction activities at these properties damaged 1060 Brickell’s facade, balconies, railings, pool deck, roof, cooling tower and other components.

MHerald2015-300x72The entire development team behind the ultra-luxe Porsche Design Tower faced a similar lawsuit brought by the association for the adjacent Millennium Condominium. The association alleged that its building suffered millions of dollars in damage caused by the Porsche Tower’s construction next door, including extensive cracks to the lobby, parking garage and pool deck. Engineers concluded that the cracks were caused by excessive vibrations from the pile-driving equipment used for the neighboring tower’s foundation, and the suit also alleged concrete overspray splattered onto Millennium’s balconies, ruining the building’s paint job and related exterior components.

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With more than 6,000 members, the American Bar Association’s Forum on Construction Law is the world’s largest organization of construction attorneys.  It offers invaluable opportunities for construction lawyers to interact and learn from many of the most accomplished practitioners in the profession.

The Forum has 14 distinct divisions focusing on different aspects of construction law, including insurance, surety, contract documents, design, construction delivery methods, and labor issues. It conducts simultaneous events at four different cities every fall focusing on the same issue, and it also hosts several other yearly gatherings that enable participants to learn about various timely issues impacting the industry.

NSiegfried2013-thumb-200x300-94905-199x300Our firm’s construction law attorneys have a long history of playing very active roles in the Forum, and partner Nicholas Siegfried is continuing to build on our legacy of involvement as the former Chair of the Young Lawyers Division of the Forum.  He has had the honor of speaking at numerous events, including the Forum on Construction Law 2016 Fall Meeting in Chicago where he spoke on the legal implications associated with new wearable technology in the construction industry.  He was also a speaker at the ABA Forum on Construction Law’s regional February 2016 program in Jacksonville, Fla., where he spoke about the types of damages recoverable in a construction claim as well as the negotiation of damage provisions in a construction contract.  In 2017, he spoke on trends in construction defect claims as well as Chapter 558 at the National Construction Defect Conference in Fort Lauderdale, Fla.

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If a party is contractually obligated to supervise construction work and determine the suitability of construction materials used in the construction, but the party fails to properly supervise and inferior materials are used by a third party, are the costs to repair damage caused by improper materials general, special or consequential damages? That is the query that led the First District Court of Appeal to certify a question of great public importance to the Florida Supreme Court in a recent case involving a construction defect dispute.

The certified question arose in Keystone Airpark Authority v. Pipeline Contractors, Inc. Keystone retained Pipeline Contractors to build airplane hangars and taxiways, and it contracted separately with Passero Associates, LLC to provide services that included “part-time resident engineering and inspection [and] material testing.”

keystone-airport-300x225Specifically, Passero agreed to “[o]bserve the work to determine conformance to the contract documents and to ascertain the need for correction or rejection of the work,” and to “[d]etermine the suitability of materials on the site, and brought to the site, to be used in construction.”

In Keystone’s eventual lawsuit against Passero for breach of contract and negligence, it alleged that Pipeline used substandard material for stabilization underneath the structures, which Passero failed to detect, causing the premature deterioration of the concrete hangar slabs and asphalt taxiways. It sought to hold Passero as well as Pipeline Contractors responsible for the cost to remove, repair and replace the hangars, taxiways and underlying subgrade.

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George-Ketelhohn-Gort-photo-200x300Firm shareholder Georg Ketelhohn authored an article that appeared as the “Board of Contributors” guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Ruling Clarifies the Use of Pre-Suit Notice in Construction Defect Lawsuits,” discusses how the application of the 10-year statute of repose for construction defect lawsuits in Florida became a bit clearer recently after one of the state’s district courts of appeal found that the requisite pre-suit notice qualified as the commencement of an action under the state’s limitation period.  Georg’s article reads:

Florida law provides a four-year statute of limitations for lawsuits founded on construction defects, but in cases of latent defects, the four-year period runs from the time the defect is discovered or should have been discovered. Florida law also provides for a 10-year statute of repose, which requires that any action founded on the design, planning or construction of an improvement to real property must be commenced within 10 years, regardless of whether the construction defect was latent. Florida’s Chapter 558 requires pre-suit notice and compliance with other pre-suit procedural requirements before filing a lawsuit alleging construction defects.

The case of Gindel v. Centex Homes involved allegations of latent defects in townhomes that were discovered by the homeowners only a few months prior to the expiration of the 10-year statute of repose. The owners subsequently provided the requisite pre-suit notice pursuant to Chapter 558 of the Florida Statutes to Centex approximately two months prior to the expiration of the 10-year repose period.

At the completion of the mandatory pre-suit procedure, which was more than one month after the expiration of the 10-year period, the builder declined to provide a remedy for the alleged defects and the homeowners filed suit.

dbrlogo-thumb-220x41-94239The trial court granted summary judgment in favor of Centex. It disagreed with the homeowners’ argument that the action commenced upon the filing of the requisite pre-suit notice as prescribed under Chapter 558. The trial court concluded that the action commenced upon the filing of the suit, so it originated after the expiration of the 10-year period.

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NSiegfried-ABA-2018-300x300Firm shareholder Nicholas D. Siegfried served as a program co-chair for the American Bar Association Forum on Construction Law’s 2018 Fall Meeting.  The event, which took place Oct. 4-5, 2018 in Montreal, Canada and was titled “It’s Lonely at the Top: Building a Successful Team with the Owner,” drew more than 450 ABA members and construction law practitioners.

George-Ketelhohn-Gort-photo-200x300For the second consecutive day, an article by one of our attorneys was featured as the “Board of Contributors” guest commentary column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is authored by shareholder Georg Ketelhohn and is titled “Going Strong: Slavin Doctrine Continues to Protect Florida’s Builders, Designers,” focuses on a recent appellate ruling that illustrates how the Slavin Doctrine continues to offer vital protections from liability for the state’s contractors, subcontractors and design professionals against future injuries alleged to have been caused by defects in their work.  Georg’s article reads:

The 60 year-old ruling by the state’s highest court held that a contractor’s liability in negligence, which is the duty of care that it owes to third parties, terminates if the property owner accepts the contractor’s work with patent defects. It is used to defend contractors from liability for patently obvious and apparent defects when they cause injuries after the property owner has accepted the improvements together with the responsibility for their ongoing maintenance and repair.

dbr-logo-300x57The recent ruling applying the doctrine was issued by the state’s Third District Court of Appeal in the case of Melitina Valiente v. R.J. Behar. It stems from the tragic death of a motorcyclist who collided with another vehicle at a Hialeah intersection in 2008. The subsequent complaint was filed by the victim’s mother against the city of Hialeah, R.J. Behar & Co., Williams Paving and Melrose Nursery, among others.

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Nick Siegfried 2013-thumb-160x240-60131Nicholas D. Siegfried has played a leadership role in the Young Lawyers Division of the American Bar Association Forum on the Construction Industry, which he chaired from 2016 – 2018.  He has focused particularly on the group’s efforts behind the ACE Mentor Program, and on March 7th, 2018 he helped to lead students from various high schools in Washington D.C. through the Construction Negotiation Module that he had previously developed for the program.

One of the most significant changes in years to the Florida laws governing construction defect litigation will take effect on July 1, and for some of the state’s real estate developers and general contractors the changes are going to bring meaningful relief.  The new law will provide one year for developers and contractors to file claims against design professionals, subcontractors and suppliers when they are hit with defect lawsuits just prior to the expiration of the 10-year deadline for latent defect litigation.

The new amendments to Section 95.11(3)(c) of the Florida Statutes are intended to correct what many believe to be an unfair byproduct of the state’s 10-year statute of repose, which functions as a final deadline for the filing of construction defect suits.  It provides that actions for latent construction defects must commence within 10 years of the last of the following four events:  the date of actual possession by the owner; the date of the issuance of a certificate of occupancy; the date of abandonment of construction if not completed; or the date of completion or termination of the contract between the professional engineer, registered architect or licensed contractor and their employer.

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Michael-Clark-Gort-photo-thumb-160x240-13551Firm partner B. Michael Clark Jr. authored an article that appeared as a “Board of Contributors” guest column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Statute of Limitation Begins to Run When Principal Under Surety Bond Abandons Construction Project,” focuses on a recent ruling by the Second District Court of Appeal finding that the limitations period for action on a surety bond began to run when the principal under the bond abandoned a construction project.  Michael’s article reads:

The [Lexon Insurance v. City of Cape Coral and Coco of Cape Coral] case stems from an ordinance that was adopted by the city of Cape Coral in January 2005 to initiate the development of an approximately 450-acre parcel, which included a single-family subdivision to be built by Priority Developers.  The city’s ordinance required the developer to provide a surety bond, and Lexon issued two subdivision bonds totaling $7.7 million. Disputes arose, and the contractor stopped work on the project in March 2007.

dbrlogo-thumb-220x41-94239In March 2012, Coco of Cape Coral purchased the project for $6.2 million, and in July of the same year the city adopted a resolution demanding that Lexon fulfill its obligations under the bonds. When Lexon declined, the city filed suit against it for breach of contract and declaratory relief, and the claims were later assigned to Coco.

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Nick Siegfried 2013-thumb-160x240-60131Firm partner Nicholas D. Siegfried authored an article that appeared as a “Board of Contributors” guest column in today’s edition of the Daily Business Review, South Florida’s exclusive business daily and official court newspaper.  The article, which is titled “Contractors That Allow Court Notices to Fall Through the Cracks Will Face Severe Consequences,” focuses on the takeaways from a recent appellate ruling against a contractor that failed to file suit against a surety bond within the required 60 days.  His article reads:

In the case of Rabil v. Seaside Builders, a dispute arose between the homeowners and their contractor. Thereafter, the contractor recorded a construction lien against the property under Chapter 713, Florida Statutes, and filed suit.  The homeowners responded by posting a lien transfer bond and recording a notice of contest of lien.  The notice shortened the time for the contractor to file suit against the transfer bond from one year to 60 days. The clerk of court dbrlogo-300x57recorded a certificate of transfer of the lien to bond and mailed a copy to the contractor along with the notice of contest of lien.

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