QUICK NOTE: PERFECTING & PRESERVING CONSTRUCTION LIEN & PAYMENT BOND RIGHTS

imagesYou are a subcontractor, sub-subcontractor, or supplier on a construction project.  What steps can you take to maximize your ability to collect payment?  

 

 

  1. Read this chart to understand what steps you need to undertake to preserve and perfect construction lien or payment bond rights. This chart will assist you with what notices you may need to serve to preserve your lien or payment bond rights and the timing to do so.  
  2.  Read this article that has tidbits to maximize payment on a private construction project.  This article will be beneficial for any subcontractor, sub-subcontractor, or supplier that performs work on a private construction project. 
  3. Take a look at the below presentation.  This is a presentation I put on with a notice company that summarizes steps you can implement to preserve your rights and increase your chances to timely collect payment.
  4. Please consult a construction attorney so that you can be proactive and not necessarily reactive when it comes to perfecting and preserving your rights.

 

[gview file=”http://www.floridaconstructionlegalupdates.com/wp-content/uploads/2016/06/FL-Mechanics-Liens-Roofers-DMA.pptx”]

 

 

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

 

QUICK NOTE: FILING THE “SHOW CAUSE” COMPLAINT REGARDING A CONSTRUCTION LIEN

imagesI have talked about your options when there is a construction lien on your property.  One option discussed is the “show cause” complaint pursuant to Florida Statute s. 713.21(4) where you sue the construction lienor giving them 20 days to show cause why its lien should not be enforced or vacated and cancelled. If the lienor fails to show cause within the 20 days by filing its construction lien foreclosure lawsuit within this time frame, the court must order cancellation of the lien. See Ruffolo v. Parish & Bowman, Inc., 966 So.2d 434, 436 (Fla. 1st DCA 2007) (“When a property owner invokes section 713.21(4), a lienor must strictly comply with section 713.21(4) in order to preserve its lien, and a trial court is without discretion to deviate from the statutorily specified time limits.”); Dracon Const. Inc. v. Facility Const. Management, Inc., 828 So.2d 1069 (Fla. 4th DCA 2002) (filing a motion for an extension of time to assert lien foreclosure lawsuit is not good cause warranting the court’s cancellation of the subcontractor’s lien.)

 

 

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

 

QUICK NOTE: PERFECT PRIVATE PROJECT PAYMENT BOND RIGHTS IF NOT IN PRIVITY WITH GENERAL CONTRACTOR

imagesRemember, if you are not in privity of contract with the general contractor on a private project where the general contractor furnished the owner with a payment bond (e.g., sub-subcontractor or supplier), you NEED to perfect your payment bond rights by initially serving a notice of intent to look to the bond on the general contractor.  (Or, serve a notice to owner but make sure you serve a copy on the general contractor).  Not serving the general contractor with this initial notice can deprive you of payment bond rights.  How do you know if there is a payment bond in place?  Pull up the notice of commencement recorded in the official records where the property is located which should identify if there is a payment bond and will attach a copy of the payment bond.  

 

For more information on payment bond rights, check out this chart.

 

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

 

QUICK NOTE: LIABILITY INSURER’S BAD-FAITH BASED ON TOTALITY OF THE CIRCUMSTANCES

imagesGenerally, whether a liability insurer engaged in bad-faith is a question of fact to be determined based on the totality of factual circumstances.  In other words, there is more to it then the insured being exposed to a verdict / judgment in excess of the insured’s liability policy’s limits since it is based on a totality of circumstances and reasonablness standard.  As explained by the Eleventh Circuit quoting the Florida Supreme Court: “The insurer must investigate the facts, give fair consideration to a settlement offer that is not unreasonable under the facts, and settle, if possible, where a reasonably prudent person, faced with the prospect of paying the total recovery, would do so.”   Moore v. Geico Ins. Co., 2016 WL 736824, *2 (11th Cir. 2016) quoting Berges v. Infinity Ins. Co., 896 So.2d 665, 668-69 (Fla. 2004).   For more on a general understanding of bad-faith claims in Florida, check out this article.  

 

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.