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Yearly Archives: 2014

Additional Charges for Unpaid Assessments are not Collectible Under Florida’s Safe Harbor Provisions of the Condominium and Homeowners’ Association Acts.

April 7, 2014 Community Association Industry Legal Blog

The U.S. District Court for the Southern District of Florida, on January 3, 2014, issued an opinion explaining what Florida associations can demand from first mortgagees who are protected by the Safe Harbor provisions of the Condominium and Homeowners’ Association Acts. In United States of America v. Forest Hill Gardens East Condominium Association, the court clarified what charges are included under the terms “common expenses” and “regular assessments” as found within the Florida Statutes. U.S. v. Forest Hill Gardens East Condo Ass’n, 2014 WL 28723 (S.D. Fla. Jan. 3, 2014). In short, the court determined that interest, late fees, collection costs and attorneys’ fees were not “common expenses” or “regular periodic assessments” for which first mortgagees were liable under Florida’s Safe Harbor provision. Id. at 1.

Great News for Construction Design Professionals: “First Cost” Defense Formally Recognized by Florida Courts

April 2, 2014 Construction Industry Legal Blog

The affirmative defense of “First Cost” was formally recognized by a Florida court in the recent decision Sch. Bd. Of Broward County v. Pierce Goodwin Alexander & Linville, 2014 Fla. App. LEXIS 3916 (Fla. 4th DCA Mar. 19, 2014). The concept of first cost has been understood throughout the construction industry for quite a while, but had yet to be formally recognized by that name in Florida courts. See id. at *30. This blog examines the first cost defense and its application in the Pierce Goodwin Alexander & Linville case.

Recovery of Attorneys’ Fees in Florida: Is it in Your Contract?

April 1, 2014 Professional Services Industry Legal Blog

The recovery of attorneys’ fees is an important consideration prior to initiating litigation. Under Florida law, a party can only recover its attorneys’ fees if there is a statutory or contractual basis for doing so. Trytek v. Gale Industries, Inc., 3 So. 3d 1194 (Fla. 2009). This posting focuses on a “prevailing party’s” contractual right to recover attorneys’ fees and a suggestion to improve contract language to recover all attorneys’ fees should you find yourself in litigation.

Terminating Condominiums According to the Florida Condominium Act: Part I

March 31, 2014 Community Association Industry Legal Blog

While the termination of a condominium may not be an everyday occurrence, it does happen from time to time. The situation occurs frequently enough that the Florida legislature dedicated an entire section of the Florida Condominium Act to it for ensuring that a formal process is in place to protect the interests of all those involved and affected. Specifically, Section 718.117, Florida Statutes, governs this termination of condominium process and provides various procedures to follow depending upon the circumstances causing the condominium’s termination. This Blog post is Part I in a series of posts on this topic and focuses on the termination of condominiums due to economic waste or impossibility of continuing. See Fla. Stat. §718.117(2).

Delay Damages: Proof of Delay

March 27, 2014 Construction Industry Legal Blog

Are you a contractor or subcontractor who has taken on a job, agreed to have it completed by a certain date, and failed to meet that deadline due to an unforeseeable delay? How about an owner that has been promised completion of a project by a specific date that was not met? If they have done much business, everyone involved in the construction industry that fits within these categories should have answered in the affirmative. Today, virtually every project has a tight budget and an aggressive schedule, and delays seem inevitable. Under Florida law, when unexpected events occur that delay a project, damages are often awarded to compensate for the impact of the delay. Damages are not recoverable, however, if the agreement indicates only an estimated time of completion or provides no liability for delays.[1] These damages include, but are not limited to, compensating for: increased material costs, increased labor costs due to increases in pay rates, increased labor costs due to loss of productivity, increased overhead, interest on unpaid funds, loss of bonding capacity, loss of profit on other work that could been undertaken but for the delayed job and costs of preparing the delay claim. Delay claims have proliferated in recent years, and are currently one of the largest categories of claims participants in the construction process routinely make. This Blog post will provide a general overview of establishing that a delay occurred, and is the first in a multi-part series explaining delay damages and their potential recovery.

The Remedies Available to Condominium Associations for Rule Violations and the Statutory Process for Enforcement

March 24, 2014 Community Association Industry Legal Blog

When properties within a condominium association are purchased, the purchaser is bound by the association’s governing documents, which can include the declaration, bylaws, articles of incorporation, and rules and regulations. When unit owners violate those governing documents, associations have certain remedies available to it under the Florida Condominium Act. Specifically, Section 718.303, Florida Statutes, provides those remedies and also the procedures that associations must follow to enforce them. This Blog post provides an overview of the statutory remedies available to condominium associations, along with the required procedures that associations must follow to ensure they do not violate the Florida Statues while attempting to enforce their own rules and regulations.

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