Construction Law in Real Estate Litigation

How does construction law apply to real estate litigation?

Construction law is a specialized legal field that deals with construction projects and the relationships between involved parties. So, naturally, in the context of Florida real estate dispute litigation, construction law applies to and addresses issues such as contract disputes, construction defects, payment claims, and construction liens, among others.

Statutes, regulations, and case law primarily govern Florida construction law. Key sources include:

Florida Construction Lien Law (Chapter 713, Florida Statutes) outlines the procedures and requirements for filing and enforcing construction liens.
Florida Building Code: A statewide code that establishes uniform construction standards for various buildings and structures.
Florida Statutes Chapter 558: Governs the resolution of construction defect claims through a pre-suit notice and opportunity-to-cure process.
Florida Department of Business and Professional Regulation: State agency responsible for regulating and licensing construction professionals.

Apart from these, various federal laws and regulations also impact construction projects in Florida, such as the Occupational Safety and Health Administration (OSHA) regulations and the Americans with Disabilities Act (ADA). Therefore, familiarity with these laws and regulations is essential for navigating construction law disputes in the state.

Need help with creating, structuring, or enforcing real estate agreements? Schedule your consultation today with a top real estate litigation attorney.

What are common construction law issues in real estate litigation?

The following issues tend to escalate real estate disputes to litigation:

Contract disputes: Disagreements over the interpretation or performance of construction contracts can lead to legal action, including disputes over payment terms, scope of work, or project timelines.
Construction defects: Defective workmanship or materials can result in significant financial losses and litigation. Parties may disagree on who is responsible for the defect and the extent of damages.
Construction liens: Under the Florida Construction Lien Law (Chapter 713, Florida Statutes), contractors, subcontractors, and suppliers can file liens against a property to secure payment for their work. Disputes may arise over the validity and enforcement of these liens.
Delay claims: Construction projects often experience delays, leading to increased costs and frequent disputes between parties. Disagreements may center on who is responsible for the delay and the appropriate compensation for the affected parties.
Insurance disputes: Construction projects typically involve various insurance policies. Disputes can arise over the coverage and the extent of the insurer’s liability for construction-related claims.

When a set of facts is appropriate for legal advocacy or intervention, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation or another form of specialized advocacy, please contact our office to set up your initial consultation.

What measures should counsel take to resolve issues and avoid litigation involving construction law?

To mitigate the risk of litigation, parties can take several strategic measures:

Clear and comprehensive contracts: Drafting detailed and unambiguous agreements can help minimize misunderstandings and disputes. Make sure to outline each party’s responsibilities, payment terms, and dispute resolution procedures.
Effective communication: Maintaining open lines of communication among all parties involved can help identify and address issues before they escalate into disputes.
Documentation: Keeping thorough and accurate records of project progress, changes, and communications can provide valuable evidence in the event of a dispute.
Compliance with laws and regulations: Ensuring that all parties comply with applicable laws, regulations, and permitting requirements can help avoid legal issues related to non-compliance.
Alternative dispute resolution: Incorporating alternative dispute resolution (ADR) methods, such as mediation or arbitration, in construction contracts can provide a faster, more cost-effective way to resolve disputes before litigation.

Please contact our office to set up your initial consultation to see what forms of legal advocacy or intervention may be available for your unique situation.

Frequently Asked Questions

What is the statute of limitations for construction defect claims in Florida?

Florida’s statute of limitations for construction defect claims is typically four years from when the defect is discovered or should have been discovered, as per Florida Statutes § 95.11(3)(c). However, there is a statute of repose, which means that no action can be brought after ten years from the date of the project’s completion, regardless of when the defect is discovered.

What is the difference between a mechanic’s lien and a construction lien in Florida?

A mechanic’s lien and a construction lien are the same thing. Both terms refer to the legal claim filed by contractors, subcontractors, or suppliers against a property to secure payment for the work or materials provided, as outlined in Chapter 713, Florida Statutes.

Can homeowners be held liable for injuries sustained by workers on their property during construction?

Under Florida law, homeowners may be held liable for injuries sustained by workers on their property if the homeowner’s negligence contributed to the injury. However, workers’ compensation insurance generally protects the homeowner from liability, as the injured worker would claim benefits from the insurance policy rather than sue the homeowner.

What types of damages are recoverable in a construction defect lawsuit in Florida?

In a construction defect lawsuit, the plaintiff may recover damages such as the cost of repairs, diminution in property value, loss of use or rental income, and in some cases, attorney’s fees and court costs.

How can parties avoid construction disputes related to payment?

Parties should have a clear and detailed contract specifying the payment terms, including the schedule, amounts, and conditions for payment. Additionally, contractors and subcontractors should be familiar with the Florida Construction Lien Law (Chapter 713) and adhere to its requirements to protect their payment rights.

Have more questions about real estate transactions and disputes?

Crucially, this overview of construction law does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.