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Author: Jimerson Birr

What are Consequential Damages on a Construction Contract?

October 24, 2016 Construction Industry Legal Blog

When a party breaches a contract and the contract does not contain a valid liquidated damages clause, the non-breaching party may be entitled to compensatory damages. The appropriate measure of damages arising from a breach of an enforceable contract is usually “the difference between the value expected from the contract and the value actually received by the non-breaching party.” Tenn. Gas Pipeline Co. v. Technip USA Corp., 2008 WL 3876141, at *5 (Tex. Ct. App. 2008). Actual damages flowing from the breach of contract are either “direct” or “consequential.” Direct damages are those that flow naturally and necessarily from the breach and compensate for loss that is presumed to have been foreseen or contemplated by the parties because of the breach. Id. Examples of direct damages include unpaid contract amounts, cost to repair defective work, and reduced project value due to nonconforming work. Consequential damages are damages that “do not necessarily, but do directly, naturally, and proximately result from” the injury for which compensation is sought.

Chapter 13 Bankruptcy: How Does it Affect Condominium Associations?

October 20, 2016 Community Association Industry Legal Blog

Condominium owners’ associations are unique under Florida law—particularly when it comes to the collection of delinquent assessments and liability. The already complicated bankruptcy process thus becomes even more complex when a condominium owner with unpaid assessments is involved. Assessments that arose prior to the filing of the bankruptcy petition are subject to discharge in the bankruptcy. But, the question then arises as to whether or not the unit owner is liable for post-petition assessments. While an owner/debtor who files for Chapter 7 is personally liable for assessments arising post-petition, there is a split in authority among Florida’s bankruptcy courts as to whether a unit owner remains personally liable for assessments when he or she files Chapter 13.

Requirements to Challenging an Association Election Through Arbitration

October 19, 2016 Community Association Industry Legal Blog

Hardly anything generates more buzz and quarrel within community associations than the annual board of director elections. During the annual meeting and election season, numerous legal inquiries are made regarding the law on the election process, election disputes and challenging election results. Challenging an election requires meticulous and timely action. This blog post discusses the requirements to challenging a community association election through the mandated arbitration process.

Riparian Rights in Florida: The Right to Accretions and Relictions

October 18, 2016 Construction Industry Legal Blog

Ownership of waterfront property is very desirable in Florida and often involves unique real property considerations. But when we discuss waterfront property in Florida, one of the most attractive and most sought-out features is an incredible water view. When it comes to private waterfront property ownership, it can be difficult to distinguish where the private land rights cease and the sovereign land ownership begins. More difficult is when your neighbor begins construction or activity that actually blocks your waterfront view. As a result, a subset of real property law has emerged to address what is called “riparian rights.”

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.

Are Business Losses Arising From a Hurricane Covered by Insurance?

October 11, 2016 Insurance Industry Legal Blog

The answer to this question is that it depends on your policy. Generally, a business can insure against business losses by purchasing Business Interruption coverage or Contingent Business Interruption coverage. That being said, commercial insurance policies are not necessarily standard policies, and the specific language of the policy determines whether a business loss is a “covered loss.” An “all risk” policy, for example, covers all losses unless expressly excluded. Additionally, some insurance policies have a civil authority clause which provides business loss when a civil authority closes or denies access to the insured property. There are also insurance policies that have a service interruption clause which provides for business loss when there is an interruption of water or power to a business.

Does the Davis-Bacon Act Apply to Private Projects on Public Land?

October 10, 2016 Construction Industry Legal Blog

A recent federal appellate decision examined an issue regarding private construction projects on public land in District of Columbia v. Department of Labor, 819 F.3d 444 (D.C. Cir. 2016). In this particular case, the district court and the appellate court involved refused to extend the application of the Davis-Bacon Act to the project in question. With the 2016 presidential election about a month away, this recent decision is important in the context of the construction industry because the administration that wins the election—depending on their labor stance—may push for more or less application of the DBA through the Department of Labor, an executive branch agency. Moreover, given the decision of the court, legislators running for election or reelection to Congress may have labor stances that should be examined by those interested in this issue and decision. This blog examines the opinion of the court and its reasoning in reaching its decision in this case and also comments on why this case is of importance to the construction industry.

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