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Fraudulent Deprivation of Lien Rights

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Section 713.31(1), Florida Statutes, provides a cause of action for a claimant when the owner or any other lienor such as the prime contractor deprives the claimant of its lien rights by fraud or collusion.  Wal-Mart Stores, Inc. v. AAA Asphalt, Inc ., 677 So.2d 93 (Fla. 1st DCA 1996). Trenton H. Cotney Florida Bar Certified in Construction Law Glenn Rasmussen Fogarty & Hooker, P.A. 100 S. Ashley Dr., Suite 1300 Tampa, FL 33602 (813) 229-3333 www.glennrasmussen.com

Defenses to No Damages for Delay Provision

No damages for delay clauses are generally upheld in court.  However, Florida case law provides that there are certain circumstances that may allow a contractor or subcontractor to pursue delay damages despite the existence of a no damages for delay clause in the construction contract.  See Triple R. Paving v. Broward County , 774 So.2d 50 ( Fla. 4th DCA 2000); Southern Gulf Utilities, Inc. v. Boca Ciega Sanitary District , 238 So.2d 458 (Fla. 2d DCA 1970).  For example, if an owner has acted in bad faith, defrauded the contractor, or actively interfered with the contractor’s ability to construct a project, then a no damages for delay provision will be deemed ineffective.  Newberry Square Dev. Corp. v. Southern Landmark, Inc., 578 So.2d 750 (Fla. 1 st DCA 1991).   Trenton H. Cotney Board Certified in Construction Law Trent Cotney, P.A. 1207 N Franklin St, Ste 222 Tampa, FL 33602 (813) 579-3278 www.trentcotney.com