Construction warranties seem simple enough but often result in a great deal of confusion, particularly when it comes to understanding the amount of time a project owner has to file a lawsuit alleging the breach of such warranties.

The complication arises because an owner’s right to sue for breach of a warranty does not expire on the date the warranty expires.

A Common But Confusing Scenario

Assume a situation in which a contractor has completed construction of a residence on January 1, 2015. The contractor has been fully paid for the work and the owner appears happy with the work. Further assume that the construction contract included a standard two-year warranty on labor and materials.

Now fast forward five years to the year 2020 and the contractor is served with a lawsuit from the same owner who is alleging breach of construction warranties. How can this be? The warranties expired in 2017, right? It would appear that this should be a simple case for the contractor to defend and win. Unfortunately, it is not so simple.

A common misunderstanding in the construction industry lies in the distinction between the concept of a warranty period and the statute of limitations for filing a lawsuit.

Four-Year Statute of Limitations

Continue Reading The Construction Warranty: It Ain’t Over ‘Til It’s Over! When Is It Over?

HB911 is proposed legislation that would substantially revamp Ch. 558, Florida Statutes, by substantially doing away with pre-suit notice requirements and replace those requirements with mandatory non-binding arbitration to take place within 180 days of the lawsuit being filed.

Notably, the new provisions would apply not only to completed projects (like the current version) but also to ongoing projects.

Impact of HB911 on Florida Construction Defect Insurance Claims

Continue Reading Proposed Legislation Would Require Mandatory Non-Binding Arbitration in Florida Construction Defect Lawsuits