Palm Beach County Bar Association
Construction Law Committee
To provide a collaborative forum for construction lawyers, provide education to attorneys as part of an annual CLE program, and promote awareness of this area of the law. For more information, contact William J. Cea, Esq. at (561) 655-5444 or firstname.lastname@example.org.
II. 2018-19 COMMITTEE MEMBERS
William J. Cea – Chair
Roger C. Brown (Morgan & Morgan); Richard Cartlidge (Mrachek, Fitzgerald, et. al); Richard Chaves (Ciklin Lubitz); Jared S. Gillman (Arnstein & Lehr); Daniel E. Levin (Cole, Scott & Kissane); Mark J. Stempler (Becker & Poliakoff); Stephen E. Walker; Olivia D. Soden; Ashley Williams and Craig Distel.
III. UPCOMING EVENTS:
Learning the Lien Law CLE
IV. HELPFUL LINKS
Published: October 2018
By: Roger Brown
Important New Updates to Florida’s Statute of Repose for Construction Lawsuits
An important new update to Florida Statute § 95.11 will significantly affect the rights of property owners, design professionals and contractors that have construction-related claims. Florida has a four (4) year statute of limitations for all lawsuits involving the “design, planning or construction of an improvement to real property.” Fla. Stat. § 95.11(3)(c). Typically, the four year limitations period begins to run from the latest of the following:
- The date of actual possession by the owner;
- The date of the issuance of a certificate of occupancy;
- The date of abandonment of construction (if not completed); or
- The date of completion or termination of the contract between the professional engineer, registered architect or licensed contractor and his or her employer.
If, however, a construction lawsuit involves a latent (hidden) defect, the statute of limitations runs from the time the defect is discovered or should have been discovered with the exercise of due diligence. This allows an owner, for example, time to discover a contractor’s shoddy workmanship that might not be immediately obvious to the naked eye.
However, the right to file a lawsuit related to hidden defects does not last forever. Florida also has what is known as a statute of repose, i.e., an absolute, outside limit on when a construction lawsuit may be commenced. In no event can a construction defect claim be filed more than ten (10) years after the latest of above-referenced dates – regardless of whether the owner knows of the defective condition or not.
Due to a recent change in Florida law – effective July 1, 2018 – there is one exception to the ten (10) year bar. Now, counterclaims, cross-claims or third-party claims that arise out of the conduct, transaction, or occurrence set out (or attempted to be set out) in a pleading may be commenced up to one (1) year after the pleading to which such claims relate is served, even if such claims would otherwise be time-barred. This gives a fair opportunity for a general contractor, for example, who is sued on the last day of the ninth year, to include any subcontractors in the lawsuit who may be at fault.
Notably, assuming the construction work was performed pursuant to a building permit, properly inspected and a final certificate of occupancy or completion was issued, then any related repair work or warranty work performed after the date of completion would not extend the limitations period. Fla. Stat. § 95.11(3)(c). In other words, owners should be cautioned that if a contractor performs repair work several years after the original date of completion, presumably even if attempted repairs cause even more problems, then the owner does not gain additional time to file a lawsuit.
The author, Roger C. Brown, Esq., practices with Morgan & Morgan’s Business Trial Group in West Palm Beach, Florida, and can be reached at email@example.com or (561) 227-5858.
 Completion of the contract means the later of the date of final performance of all the contracted services or the date that final payment for such services becomes due without regard to the date final payment is made. See Fla. Stat. § 95.11(3)(c). This definition was added to the statute to avoid the situation, for example, where an owner could withhold a small portion of the payment due the contractor, thereby claiming the contract was not “complete,” to effectively create an indefinite statute of limitations period.