Jax Utilities Management, Inc., v. Hancock Bank et al., 2015 WL 1809322 (Case No. 1D14-664, April 22, 2015).

This case concerns a contractor’s failed attempt to obtain relief against the lender on a large development project.  Lender obtained a final judgment of foreclosure in September 2011 against developer.  In December 2011, contractor filed suit against lender for an equitable lien and unjust enrichment.  The suit also included a claim against developer for breach of contract for failure to pay nearly $500,000 invoiced in June 2009 that developer failed to submit to lender.  The trial court entered summary judgment in favor of lender and the First District Court of Appeal affirmed on two grounds.

The First District held that the one-year statute of limitations on contractor’s equitable lien claim commenced when it last performed work and that the limitations period expired well before it filed suit in December 2011.  The court summarily rejected contractor’s argument that the limitations period did not begin until lender filed suit to foreclose on the property.

The First District also held that section 713.3471, the Florida statute dealing with lender liability to contractors, precludes common law remedies such as equitable lien and unjust enrichment.  The statute provides a cause of action against a construction loan lender that decides to cease further advances under a construction loan and fails to give notice to the contractor.  The Court found that the plain language of this law evinces a legislative intent to displace the common law remedies and the law is so repugnant to common law remedies that the two cannot coexist.

From The Construction Regulation Subcommittee Monthly Report

Trenton H. Cotney

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Trent Cotney, P.A.

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