Florida Construction Law

In W&W Lumber of Palm Beach, Inc. v. Town & Country Builders, Inc. , 35 So.3d 79 (Fla. 4th DCA 2010), the general contractor had filed suit against a window installation subcontractor for breach of contract damages.  The subcontractor counterclaimed for nonpayment.  The prime settled with the manufacturer of the windows and subsequently dismissed its claims against the subcontractor with prejudice.  The prime sought to amend to add additional defenses based on setoff.  The Court held that the doctrine of res judicata barred the prime's ability to add the setoff defense because it dismissed the claim giving rise to the setoff with prejudice.   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

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

In Spectrum Interiors, Inc. v. Exterior Walls, Inc., 2009 WL 347745 (Fla. 5th DCA 2009), the Court held that the language contained in an executed waiver and lien release limited a sub-subcontractors damages.  The Court held that the sub-sub waived damages for payments received in response to executed lien waivers and could not seek damages prior to the executed lien releases. Potential lienors should carefully review all lien waiver documents prior to execution to insure that they are not waiving claims for potential extras, unexecuted change orders or other compensation. 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