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Developer hired the Contractor in 1993. Developer terminated the contract in May 1994, filing suit against the Contractor in August 1994. The trial court entered judgment in the Developer's favor in February 1996.
Surprise of surprises, the Contractor could not pay the judgment. The Developer notified the Construction Industries Recovery Fund for compensation in August 1996. Under Florida law, the fund will compensate consumers who suffer damages as a result of certain violations by licensed contractors. The Contractor's license is suspended until he repays the fund.
One hitch. Claimants are required to file their claim against the fund within 2 years from the time of the "act giving rise to the claim." The appellate court concluded that the 2 year limitation period began to run in May 1994, when the Developer terminated the contract, thus its claim against the fund was 3 months late.
Moral: Problems tend to get worse over time. Free v. Construction Industries Recovery Fund, 729 So.2d 980 (Fla. 2DCA 1999). |
