[CLC-Discussion] HB 1247

Wed Mar 20 07:50:39 PDT 2019

Agreed that the requirements for NNP are extremely burdensome.  If a trade on a large project is serving the NNP, the “contract” would include the prime contract between the GC and the owner and alone involve not dozens but hundreds of pages.

Charles B. Hernicz, Esq.

Board Certified in Construction Law by The Florida Bar          

Hernicz Legal Services, P.L.
1460 Wood Row Way 
Wellington, FL 33414 
Telephone: (561) 753-7511 
Facsimile: (561) 753-7082 
Chernicz at HerniczLegal.com

From: clc-discussion-bounces at lists.flabarrpptl.org <clc-discussion-bounces at lists.flabarrpptl.org> On Behalf Of Jeffrey Price
Sent: Wednesday, March 20, 2019 10:10 AM
To: Dan Vega <DVega at TEVTLaw.com>; Barry Kalmanson <bkpa1 at aol.com>
Cc: clc-discussion at lists.flabarrpptl.org
Subject: Re: [CLC-Discussion] HB 1247

What is the purpose of a Notice of Non-Payment? (NNP)

I understand it to be just that – a NOTICE.

Currently we all know that the NNP must “be provided” within 90 day of last work and includes:

The name and address of the lienor; 

The name and address of the surety; 

Description of the services provided, or materials furnished; 

The address of the real property improved; 

The amount due and unpaid; and 

The lienor’s signature. 

This bill ups the notice requirement for the NNP (additions in RED) and we are no longer filing a “notice” but a full-blown claim – a lawsuit in all but name.

The name of the contractor and the contractor’s address; 

The name of the surety and the surety’s address; 

The nature of the labor or services performed; 

The nature of labor or services to be performed, if known; 

The materials furnished; 

The materials to be furnished, if known; 

The amount received by the lienor; 

The amount due the lienor and the amount to become due, if known; 

Copies of the following documents if they exist; 

The lienor’s contract or purchase order and any amendments thereto; 

Invoices, pay requests, bills of lading, delivery receipts, or similar documents; and 

A statement of account reflecting all payments requested and received for the labor, services, or materials. 

Written verification of the notice of nonpayment in accordance with s. 92.525. (Pursuant to s. 92.525, a person who knowingly makes a false written declaration is guilty of a third degree felony); and 

The lienor’s signature and address. 

Clearly including all the extra material amounts to a burden – contracts can run dozens of pages, invoices, pay requests, bills of lading? 

Next, we have a sneaky way to file a Conditional Payment Bond

The bill provides an additional way for a contractor to record a conditional bond. 

The bill also provides that failing to properly record a conditional payment bond does not preclude the bond from being a conditional payment bond. That’s a change

The bill provides that in lieu of listing the bond as a conditional payment bond on the NOC and recording the bond with the NOC, 

a contractor may record a notice identifying the bond as a conditional payment bond with the bond attached before the contractor begins work on the project in a separate filing.

Now we get to look in additional locations for information – that makes things easier – not.

Here is exactly what the Legislative Substantive Analysis says:

“C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: 

Unknown. It is unclear if the additional provisions required in order to serve a notice of nonpayment will have an effect on the private sector. The new provisions may make it more difficult for a subcontractor to file a notice of non-payment. Other provisions may make it easier to collect attorney’s fees for the prevailing contractor if a claim is made.”

Sorry for wasting your time, but I think this bill has problems.

 <https://www.npw-law.com/> 

From: clc-discussion-bounces at lists.flabarrpptl.org <mailto:clc-discussion-bounces at lists.flabarrpptl.org>  <clc-discussion-bounces at lists.flabarrpptl.org <mailto:clc-discussion-bounces at lists.flabarrpptl.org> > On Behalf Of Dan Vega
Sent: Tuesday, March 19, 2019 8:48 PM
To: Barry Kalmanson <bkpa1 at aol.com <mailto:bkpa1 at aol.com> >
Cc: clc-discussion at lists.flabarrpptl.org <mailto:clc-discussion at lists.flabarrpptl.org> 
Subject: Re: [CLC-Discussion] HB 1247

Thanks Barry. 

I would like to participate on the call.  

Working in Miami for the past 20 years, where a large portion of the subs speak mainly Spanish, the notice of non payment amendment will certainly make it more difficult for these companies to perfect their claims without the assistance of counsel.   

On 713.245 amendment, what is the purpose of recording the notice identifying bond as conditional if nothing occurs if it is not recorded ?   

And isnt 713.245 supposed to sunset at some point?  No owner with half a brain will purchase one of these bonds especially since as I understand it, they cost the same as a 713.23 bond.  

Also, why would the legislature equate a notice of non payment to an encumbrance on real estate?

Finally, am I reading this amendment right so that if passed, 627.428 will apply to a payment bond claimant’s fee claim - net judgment instead of significant issues?  

Thank you.  

Sent from my iPhone 

Daniel R. Vega, Esq.

Florida Board Certified in Construction Law

Florida Supreme Court Certified Circuit Court Mediator

Taylor Espino Vega & Touron, PLLC

201 Alhambra Circle, Suite 801

Coral Gables, Florida 33134

Telephone: (305) 443-2043

Facsimile: (305) 443-2048

Cell: (305) 962-5186

E-mail: dvega at tevtlaw.com <mailto:dvega at tevtlaw.com>  

On Mar 19, 2019, at 7:11 PM, Barry Kalmanson <bkpa1 at aol.com <mailto:bkpa1 at aol.com> > wrote:

Today the Business and Professions Subcommittee of the Florida House amended House Bill 1247 with the attached. As you will note it will make it almost impossible for a claimant to recover on a payment bond in Florida.

It also permits contractors after the notice of commencement is recorded to record an unspecified  notice that a bond is conditional without serving it on any claimant. Claimants will have NO  notice of the recorded document and not know how to properly proceed.

Additionally it creates new causes of action creating substantial unnecessary litigation.

We should immediately hold a conference call to vote on the proposed bill and have our lobbyist act on our behalf.

Sincerely,

Barry Kalmanson

500 N Maitland Avenue

Suite 305 

Maitland, Fl. 32751

407-645-4500 x 215

www.barrykalmanson.com <http://www.barrykalmanson.com> 

<loaddoc.aspx.pdf>

Deborah E. Lawson
(850) 570-0033
Sent from my iPhone

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