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Author: Austin B. Calhoun, Esq.

Construction Defect Statute of Repose: Post-Closing Punch-List Work ay Delay its Start

May 4, 2017 Construction Industry Legal Blog

Florida’s Fifth District Court of Appeals is shaking up the construction defect statute of repose once again.[1] A recent 5th DCA opinion implies that the 10-year construction defect statute of repose does not start to run at the closing of a purchase of a newly-constructed home if there remains punch-list work to complete after closing.

House Bill 377 Clarifies Date of Completion of the Contract for Statute of Repose—a Legislative Win for Contractors

April 27, 2017 Construction Industry Legal Blog

On March 30, 2017, the Florida House of Representatives unanimously passed House Bill 377. The Bill is still working its way through the Senate, but has received a favorable response and is predicted to pass. If it becomes law, HB 377 will amend the construction defect statute of repose to clarify that the “date of completion of the contract” is the date that final payment becomes due.

Defending Involuntary Bankruptcies Part II: Defenses, Strategies and Remedies

March 2, 2017 Banking & Financial Services Industry Legal Blog

Involuntary bankruptcy is a legal proceeding creditors may use to force a debtor into bankruptcy, rather than a debtor voluntarily seeking bankruptcy protection on his or her own behalf. Creditors seeking involuntary bankruptcy must file a petition in the bankruptcy court, and the debtor has the opportunity to defend against […]

Defending Involuntary Bankruptcies Part I: The Basics of an Involuntary Bankruptcy

February 24, 2017 Banking & Financial Services Industry Legal Blog

Involuntary bankruptcy is a legal proceeding creditors may use to force a debtor into bankruptcy, rather than a debtor voluntarily seeking bankruptcy protection on its own behalf. Creditors seeking involuntary bankruptcy must file a petition in the bankruptcy court, and the debtor has the opportunity to defend against being forced […]

Performance Bond Claims: Strict Compliance with the Bond Language is Required

February 10, 2017 Construction Industry Legal Blog

Performance bonds on a construction project can be a valuable asset. However, the language of the bond may be filled with traps for the unwary. A bond obligee must be careful to strictly comply with the bond language, or else the bond protection may be lost—which can be a very bad thing. A recent case, Arch Ins. Co. v. John Moriarty & Associates of Florida, Inc., 15-22403-CIV, 2016 WL 7324144 (S.D. Fla. Dec. 12, 2016), highlights how a bond obligee can lose its bond protection by failing to strictly comply with the bond language… and it cost the bond obligee One Million Dollars. Failure to understand and strictly comply with the bond language can be costly.

Are Letters of Intent Enforceable in Florida?

October 13, 2016 Professional Services Industry Legal Blog

So-called “letters of intent” are used quite often in a wide array of business contexts. Even though they are used frequently, however, much of the time the parties signing the letter do not understand the legal effect of the letter. Parties often don’t understand if the letter of intent is legally enforceable. Can a party sue on the letter of intent alone if the other party fails to consummate the deal or hold up their end of the bargain? The answer to that question under Florida law is: maybe. This blog provides guidance on the main issues affecting enforceability of a letter of intent.

Can the Language of a Payment Bond Limit its Duration?

September 1, 2016 Construction Industry Legal Blog

A payment bond provided by the general contractor is a valuable asset to any subcontractor or supplier on that project. Payment is assured by the bond—a subcontractor or supplier will get paid even if the general contractor doesn’t make payment. While there are certain hurdles to perfecting your bond rights that get a lot of attention, such as the Notice to Owner Requirement, there is one possibly critical question that has been largely ignored: What is the effective duration of the payment bond? In other words, does the work have to be provided during a certain time period in order for payment to be covered by the bond?

Assignment for the Benefit of Creditors: Stay of Litigation

July 22, 2016 Banking & Financial Services Industry Legal Blog

This is the first of three follow up blogs to our earlier publication Assignment for the Benefit of Creditors: General Overview. This blog explores ABC’s lack of statutory automatic stay and whether there is a functional and practical equivalent. The next blog will discuss whether a creditor may file a claim after the statutory 120-day deadline. The third blog will examine whether a creditor may file a claim of fraudulent transfer against the estate.

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