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  • QUICK NOTE: SUBCONTRACT PAYMENT BOND = COMMON LAW PAYMENT BOND

    What is a common law payment bond? A common law payment bond is a bond not required or governed by a statute. For example, if a prime contractor provides the owner a payment bond, that bond will be a statutory payment bond. On the other hand, if a subcontractor provides the general contractor with a payment bond, that bond will be a common law payment bond.

    Florida Construction Legal Updates- 13 readers -
  • SOMETIMES YOU NEED TO CONSIDER THE COBLENTZ AGREEMENT

    Since insurance, particularly liability insurance, is such an important component when it comes a construction project, understanding certain nuances such as a Coblentz Agreement (a what kind of agreement agreement?!?—keep reading) becomes helpful. If there is a construction defect claim / lawsuit, the implicated parties (e.g.

    Florida Construction Legal Updates- 14 readers -
  • TENDER THE DEFENSE OF A LAWSUIT TO YOUR LIABILITY CARRIER

    Sometimes you come across a head scratcher. This would be a decision that does not seem to make a whole lot of sense. For instance, if you are sued and you maintain liability insurance that would potentially provide you a defense and indemnification, not notifying your insurance carrier is a head scratcher. You pay substantial dollars towards the premium of that policy.

    Florida Construction Legal Updates- 17 readers -
  • DESIGN PROFESSIONAL NEEDS A LICENSE TO BE SUED FOR PROFESSIONAL NEGLIGENCE

    “With regard to claims for professional negligence, the Florida Supreme Court has explained that ‘where the negligent party is a professional, the law imposes a duty to perform the requested services in accordance with the standard of care used by similar professionals in the community under similar circumstances.’” Sunset Beach Investments, LLC v. Kimley-Horn and Associates, 42 Fla. L.

    Florida Construction Legal Updates- 11 readers -
  • PROPERLY TRIGGER THE PERFORMANCE BOND

    A performance bond is a valuable tool designed to guarantee the performance of the principal of the contract made part of the bond. But, it is only a valuable tool if the obligee (entity the bond is designed to benefit) understands that it needs to properly trigger the performance bond if it is looking to the bond (surety) to remedy and pay for a contractual default.

    Florida Construction Legal Updates- 16 readers -
  • BAD FAITH IN THE FIRST-PARTY INSURANCE CONTEXT

    In a previous article I discussed bad faith when it comes to an insurance claim. Recently, in Barton v. Capitol Preferred Insurance Co., Inc., 41 Fla. L. Weekly D2736b (Fla. 5th DCA 2016), the court discussed bad faith in the first-party insurance context (i.e., a property / homeowners insurance policy).

    Florida Construction Legal Updates- 7 readers -
  • SPEARIN DOCTRINE AS AN AFFIRMATIVE DEFENSE

    The Spearin doctrine, referred to as the implied warranty of constructability doctrine, is oftentimes utilized as an affirmative defense by a contractor being sued for construction defects. Under the Spearin doctrine (recognized in the government contract setting), a contractor is NOT liable for defects in the plans and specifications furnished by the owner if the contractor ...

    Florida Construction Legal Updates- 20 readers -
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