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Construction Law Authority / Posts tagged "construction" (Page 4)

Being Indemnified for Your Own Wrongdoing

Despite the general rule that parties to a contract may agree to any terms they want, there are some terms that must satisfy certain requirements in order to be enforceable, like indemnification provisions. Even in short, simple, standard form documents, like work orders, the provisions must satisfy the requirements, or you might not be able to rely on them when you need them most....

Why Should the Condominium Association Require Bonds from the Renovation Contractor

               We often encounter Condominium Associations who have difficulty understanding why they should bond their exterior renovation contract.   Many Associations consider it money wasted on another layer of liability protection when they would rather spend the money on actual scope – sticks, bricks, and finishes. They do not expect the surety to pay the claims even if they are made against the Contractor’s Performance and Payment Bonds.  Association Boards often ask, “Isn’t the risk already covered by all the insurance required from the Contractor?” The short answer is, “No”, and here’s why.             A performance bond, unlike insurance, assures the Association that the Contractor, or its Surety, will complete the project even if the contractor goes bankrupt or cannot competently perform to complete the contract. In addition, sometimes a Surety can be required to pay Association claims for work not properly performed even after occupancy. See, Federal Ins. Co. v. The Southwest Florida Retirement Center, Inc.,...

HB 1013 signed by Governor Scott

Governor Scott signed HB 1013 into law late last week.  The legislation will take effect on July 1, 2012, and attempts to wipe out all common law implied warranties, including for pending litigation.  I think there are significant constitutional issues as applied to pending claims. We may find out quickly as the Lakeview v. Maronda case is still pending before the Supreme Court.  The Court may be able to address the scope of the warranty and also the constitutionality issue at one time. It will be an interesting decision but may be one of limited value going forward....

Article on HB 1013 in Miami Herald

Today's Miami Herald has an article, by Toluse Olorunnipa, about the ongoing battle over HB1013.  The Governor's office has received over 1,000 emails in recent days opposing the legislation. Opposition to the legislation outnumbers the supporters by a nearly 4-1 margin.  Per Governor Scott's deputy press secretary “The Governor is currently reviewing the bill and will make a decision in the allotted timeframe.”  The whole article is worth reading here.  As usual proponents of the legislation throw out the phrase "judicial activism" which completely ignores that the entire implied warranty was created by the judiciary to overcome another judicial doctrine, caveat emptor.  I have discussed the merits of the bill on numerous posts on the blog so I will not repeat them.  I know the Governor's office has been in touch with proponents and opponents of the bill to obtain information.  The best thing to do at this point is to continue contacting Governor Scott's...

HB 1013 (SB 1196) presented to Governor Scott

HB 1013, which eliminates common law implied warranties in common areas of all communities in the state, was sent Friday to Governor Rick Scott for his consideration. Governor Scott has until April 28, 2012 to act on the bill. He can sign the bill into law, veto it, or allow it to become law without his signature. This legislation leaves Florida home buyers with no protections for shared amenities and thereby shifts the burden for repairs to the homeowners and we urge Governor Scott to veto HB 1013. If you have not yet contacted Governor Scott, please do so and urge him to veto HB 1013. It is the only way to prevent this bill from becoming law.  You can e-mail Governor Scott at Rick.Scott@eog.myflorida.com and copy his Legislative Affairs Director, Jon Costello, at Jon.Costello@eog.myflorida.com. You can copy and paste the following suggested text in your message to the Governor: Please veto HB 1013, which eliminates common law...

Orlando Sentinel Editorial Opposes HB 1013

The Orlando Sentinel Editorial page of April 4, 2012, has come out in opposition to HB 1013, the anti-common law implied warranty legislation.  The editorial is reprinted in part below. To view the full editorial please follow the link.  Do not forget to contact the Governor's office to veto this legislation.  Editorial Below- When a leaking underground drainage system pitted roads and driveways and created sinkholes in lawns at aWinter Garden subdivision, homeowners sued the developer to cover the damage and repair costs. After conflicting rulings in lower courts, the case reached the Florida Supreme Court, which heard arguments on it in December. But before the justices had issued a ruling, the Florida Legislature stepped in like Judge Judy and moved to decide the case — and any future ones like it — in favor of the developer. Lawmakers often carp about being pre-empted or overruled by "activist judges." But in this case, lawmakers trumped the judges. Lobbied...