An effort to reform Florida’s construction defects statutes contained in Chapter 558, F.S., is on the move in the Florida Legislature. The legislation, HB 21 by Representative Alex Andrade (R – Pensacola) and SB 270 by Senator Keith Perry (R – Gainesville), is designed to move the Ch. 558 construction defect resolution process closer to its original intent of providing a non-litigious forum for owners and contractors to cure bonafide construction defects. Notably, the legislation would make substantive changes to Ch. 558 in the following ways.
The bills provide for a definitional change to “Material Violation” in 553.84, F.S., that would require an elevated threshold to ensure that owners aren’t initiating claims for superficial or miniscule things that are not a defect and do not weaken the integrity of the completed structure.
The legislation would require an owner to allow an identified defect to be corrected under any existing relevant warranty covering the work. This provision is intended to minimize the opportunity for claimants to drag out claims seeking a financial windfall rather than the curing of any defect.
“Creative” attorneys around the state have birthed a volume-driven cottage industry of Ch. 558 claims driven by recruiting owners
to file defect claims in mass through advertising, canvassing buildings and neighborhoods and other forms of solicitation. Oftentimes, the owners in this scenario have no actual knowledge of a deficiency in their property. In order to combat this practice,
the legislation would require an owner initiating a construction defect claim under Ch. 558 to personally attest to the claim under
penalty of perjury.
Recognizing the security interest in real property held by a mortgagee or assignee, the legislation would require that such mortgagee or assignee be notified of any alleged construction defect in the collateralized property. This provision is intended to facilitate the curing of any defect in the property rather than the pocketing of any settlement proceeds, dissuading parties who allege defects merely for the chance at a cash settlement.
Both bills have already started their respective treks through the committee hearing process and will be featured prominently during the 2021 Regular Session of the Florida Legislature, which formally convenes this month. FRSA has been at the table since
last summer with an industry coalition pushing these bills and we will continue our efforts until this needed reform effort crosses the legislative finish line.
Chris Dawson is an attorney and professional lobbyist for GrayRobinson’s Orlando office and is licensed to practice law in both Florida and Alabama. He primarily focuses on lobbying and government relations for public and private sector clients at the Executive and Legislative levels of state government. He is credentialed as a Designated Professional Lobbyist by the Florida Association of Professional Lobbyists. Chris also holds two degrees in Civil Engineering and has experience in construction litigation and design professional malpractice defense.
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