Florida Appellate Court Provides Guidance on Construction Liens and Substantial Performance Disputes

Construction projects don’t always go as expected. Conflicts over payments, installation problems, or contract execution can quickly escalate into legal battles. When this happens, construction liens and associated lawsuits might ensue.

At Bleakley Bavol Denman & Grace, our attorneys frequently guide clients through the complex world of construction and property disputes in Florida, helping them understand how courts assess claims involving liens and contract performance.

Understanding Construction Liens in Florida

Florida law allows contractors and construction firms to place a lien on a property if they haven’t been compensated for their work. These liens can pose significant challenges for property owners, as they may affect the property’s title and even trigger foreclosure.

A contractor aiming to enforce a lien typically needs to demonstrate compliance with the requirements under Chapter 713 of the Florida Statutes and that they have substantially fulfilled the contract’s work obligations. Substantial performance means the contractor has completed the work in accordance with the contract terms to a degree that refusing payment would be unreasonable, even if there are minor outstanding issues. Nonetheless, determining whether substantial performance has been achieved isn’t always straightforward.

Construction Dispute Over Air Conditioning Installation

A recent appellate case shows how construction disputes can arise when property owners and contractors disagree on performance and payment.

In this case, homeowners contracted an air conditioning company to install two units in their apartment for a total of $11,400. The contract stipulated an upfront payment of half the total cost, with the remaining balance due upon completion of the work. The homeowners made the initial payment, and the units were successfully installed.

After installation, however, the homeowners claimed that one of the units had been installed incorrectly and refused to pay the remaining balance. Shortly afterwards, the contractor recorded a claim of lien against the property and filed a lawsuit seeking to foreclose on it.

The homeowners then filed their own lawsuit, arguing that the lien improperly affected the property title. According to their allegations, the contractor later returned to the property, acknowledged that the unit had been installed incorrectly, and replaced it with a new unit.

Although the homeowners eventually paid the remaining balance, the dispute did not end there. The parties continued to disagree about whether the contractor had substantially completed the work before recording the lien.

The Appellate Court’s Decision

The trial court first sided with the contractor, finding that the company had mostly completed the work outlined in the contract. The homeowners then took their case to the Florida Third District Court of Appeals, claiming that the issue shouldn’t have been settled so quickly.

The appellate court explained that determining whether a contractor has substantially performed a contract is usually a factual question to be assessed after examining all relevant evidence. Since the record showed conflicting details, such as the contractor returning to replace a unit after it was installed, the court ruled that this issue couldn’t be resolved purely as a legal matter.

Additionally, the appellate court noted procedural issues with the trial court’s ruling, including granting relief that had not been properly requested by a motion. As a result, the appellate court reversed part of the ruling and sent the case back for further proceedings.

Contact Us for Legal Help

If you are facing a construction lien dispute or contract issue, contact the experienced Tampa construction litigation attorneys at Bleakley Bavol Denman & Grace to discuss your case and learn how we can help protect your rights.

Source:

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