Updates

Real estate project development is a process. Anyone who's ever been involved in the process knows that there are potential legal liabilities each step along the way. But how does one avoid these liabilities? To paraphrase Frank Herbert, the best way to avoid a trap is to know it exists.

The purpose of this page is to provide updates of recent opinions issued by Florida appellate courts that pertain to the real estate development industry. Courts make decisions every day that affect how persons involved in real estate development do business. Each opinion released by a court not only decides the dispute between the parties, but serve to instruct persons doing business how to (and how not to) conduct themselves. Read these cases and learn where some of the traps are.

DEVELOPMENT PHASE

[Of Wet Computers and Dry Theory]. The Florida Supreme Court scales back the economic loss rule even further.
[First in Time, First to Light]. First utility to provide service to the project had exclusive rights to the project because, even though other utility had prior rights, the other utility did not exercise those rights.
[Grimes & Misdemeanors] State can impose permit conditions even though failure to satisfy permit conditions is a crime.

[Copyright I] Idea for development not so novel as to support a claim for misappropriation of ideas.

[Copyright II] Idea for development possibly novel enough to support a claim for unfair trade practices.

[Main? What Main?] Developer's claim against the County for plans mis-labeled as as-built barred by sovereign immunity.

[Musical Ordinances] Developer not entitled to injunction against enforcement of amended municipal zoning laws.

[Unduly Restrictive] Assessment provisions in master declaration not a "restrictive covenant."

[Enough Golf Already] County's comprehensive plan was an ordinance giving the County discretion to disapprove application for a golf course site approval.

DESIGN PHASE

[Slavin Fall] Record did not show whether defect was patent under the Slavin doctrine.

[Economic Losses Forthwith] Supreme Court rules that economic loss rule does not apply to negligence claims against professional engineers.

CONSTRUCTION PHASE

[Like A Good Neighbor, We Stay Away]. Contractors comprehensive general liability policy did not cover repair of defective workmanship.

[Not Interested] Contractor not entitled to pre-judgement interest from surety in suit for indemnification.

[Pay when paid] Subcontractor's Surety not entitled to payment until Contractor was paid.

[I'll Have Tomato Juice] Third party beneficiary could enforce indemnity provision in construction contract.

[Limitation of Repose] Condominium Act does not extend statute of repose.

[Muck I] Mutual mistake as to sub-surface conditions rendered construction contract voidable.

[Muck II] No right to jury trial on defenses to release.

[Hard Workin' Blues] Contract with an unlicensed contractor was unenforceable.

[Sleeping Claims Die] Claim against Construction Industries Recovery Fund was barred by a two year statute of limitations.

[Buy Aluminum] Developer was not liable for injuries of Contractor who fell off flagpole, because Developer did not exercise control, or have actual or constructive knowledge of dangerous condition causing injury.

[Be Careful What You Ask For] Supplier stated a claim against Contractor for breach of oral contract based on pre-bid conversations.

[Look Back in Anger] Contractor had a duty to maintain the project site in reasonably safe condition, even though it had not performed work there for almost two years.

PROJECT CLOSEOUT AND TURNOVER

[Get it in Writing]. Contractor cannot base a claim of lien on a contract implied in law.

[Shades of Truth] Claim of lien for delay damages was willfully exaggerated.

[Lien on Me] Common entity theory and notice of partial recommencement did not defeat supplier's lien.

[Now He's Adversely Affected] Failure to follow notice provisions did not destroy lien, because owner had not been adversely affected.

[Demolition Man] One month interval between completion of the work and accident was sufficient to give the Developer constructive notice of the dangerous condition.

OTHER CASES OF INTEREST

[In the Name of the Lawyer] Tenant personally liable when corporation on lease did not exist.

[This Old House] Contractor must act without its agency with County to be liable; Inverse condemnation claim must be raised in complaint.


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