[CLC-Discussion] construction claims of lien and the dangers of arbitration

[Randall Gilbert]

If someone wanted to buy the property and looked in the public records and saw no suit was brought to enforce the lien within one year they would think the property is clean.
Filing a foreclosure of a construction lien in an arbitration is not public notice.
Therefore, the right step to take is to file the foreclosure claim in court and simultaneously move to stay pending arbitration.

Sincerely yours,
Randall Gilbert, Esq.
Board Certified Construction Lawyer

[Randall-Gilbert]



From: clc-discussion-bounces at lists.flabarrpptl.org [mailto:clc-discussion-bounces at lists.flabarrpptl.org] On Behalf Of Roberts, Hardy L.
Sent: Wednesday, May 21, 2014 3:22 PM
To: clc-discussion at lists.flabarrpptl.org
Subject: [CLC-Discussion] construction claims of lien and the dangers of arbitration

Florida's Second District Court of Appeal issued the attached decision this morning in Snell v. Mott's Contracting Services, Inc., regarding construction claims of lien and arbitration proceedings.  The court held that Section 713.21(1) requires that an "action to enforce a construction lien must be brought 'in a court of competent jurisdiction' within one year of recording the claim of lien or it automatically extinguishes" and that an arbitration proceeding is not a "court."  The court also held that the "the lien became unenforceable pursuant to section 713.22 prior to the issuance of the [arbitration] award" due to the contractor's failure to file an enforcement action in court.

Much thanks to Matt Belcastro for bringing this decision to the attention of the Construction Law Committee.

[Carlton Fields Jorden Burt, P.A.]
Hardy L. Roberts
Attorney at Law
Board Certified by the Florida Bar in Construction Law
4221 W. Boy Scout Blvd., Ste. 1000
Tampa, Florida  33607-5780
Direct:  813.229.4105 | Fax:  813.229.4133

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