[CLC-Discussion] Who to join when lien boded off under 713.24

Wed Oct 7 10:54:55 PDT 2020

The reasonableness of an increase in a bond amount to cover fees and the evidence required to support it was addressed in Lake Eola Builders v Metropolitan at Lake Eola, 416 F. Supp. 2d 1316 (Fla. M.D. 2006), in which the court held the increase provision only applies to incurred fees and costs, rather than anticipated future fees.  The court also said there must be sufficient evidence of the fees the lienor incurred incident to enforcing the lien.  Similarly, in Royal Marble, Inc. v. Innovative Flooring, 932 So. 2d 221 (Fla. 2d DCA 2005), the court denied a bond increase for fees because the lienor failed to present sufficient evidence to establish that its claimed attorney’s fees were reasonable.  The exact extent of proof required to increase bonds for attorney fee claims is still uncertain.  Additionally, because the statute lacks consequences for noncompliance with court ordered increases in the bond amount and there is case law denying contempt orders for noncompliance, it remains to be seen how beneficial this statutory procedure really is.

Lee A. Weintraub
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Board Certified in Construction Law
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Becker & Poliakoff
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Subject: Re: [CLC-Discussion] Who to join when lien boded off under 713.24

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As a follow up, I did find this case which seems to support Lee’s analysis.

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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 RPPTL CLC-Discussion
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Subject: Re: [CLC-Discussion] Who to join when lien boded off under 713.24

If I’m not mistaken, I think you can only move to increase the deposit for fees you actually already incurred, not fees you anticipate incurring in the future.

Lee

A.

Weintraub
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You should also consider filing a motion pursuant to s. 713.24(3) for an order to increase the cash security to cover your attorney’s fees, as the statutory formula only requires $1,000 or 25% of the amount demanded for attorney’s fees and costs.  So if you’re suing on a $100k lien, that’s only $25,000.

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Assuming you already sued the property owner to foreclose the lien (before bonding) and that the same owner entity is the principal on the cash bond, then you  don’t need to add a new  party.  You just need to amend your Complaint to reflect that the relief requested is no longer the foreclosure of a lien on real property but a foreclosure against the bond proceeds deposited with the Clerk as substitute security for Plaintiff’s lien claim.  You still have to prove up the lien elements but at the end of the day your final judgment is not for the sale of real property to satisfy the lien but a direction to the Clerk to release to the Plaintiff the judgment amount from the  funds held by Clerk as substitute security for the lien.

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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 RPPTL CLC-Discussion
Sent: Wednesday, October 7, 2020 10:02 AM
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Subject: [CLC-Discussion] Who to join when lien boded off under 713.24

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Good Morning,
I am involved in a construction lien case, where is the owner has bonded off the lien under 713.24 by depositing the funds in the court registry.  I know I need to amend to join in the surety, however, in this case there is no a separate surety as the owner deposited the funds with the clerk pursuant to 713.24 (1)(a).  Do I join the Clerk of Court?

Laurie B. Sams
Van Winkle & Sams, P.A.
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Sarasota, FL 34233
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