[CLC-Discussion] 713.346: Time to let Owners in on the party?

[RPPTL CLC-Discussion]

I agree Robert. However, while we are on the subject, couldn't a similar end be achieved by the Legislature creating a private civil cause of action under 713.345 which currently creates criminal liability for a contractor who misapplies construction funds?   Over the past few years, I have had instances on behalf of both Owner clients and subcontractor clients where a private cause of action under 713.345 for a statutory violation would have been most useful.   When a contractor receives funds from an owner and doesn't pay subs and suppliers (with no good faith performance related basis to withhold payment), then both the owner and sub will be hurt.  It would be beneficial to see more civil teeth in the legislation.  I have gone the route of getting local law enforcement involved under 713.345 but it is a long and arduous process and very dependent on the quality and interest level of the agency having jurisdiction.

Michael Gibbons
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215 N. Eola Dr. | Orlando, FL 32801
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LOCAL ROOTS. BROAD REACH. SM

From: clc-discussion-bounces at lists.flabarrpptl.org <clc-discussion-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL CLC-Discussion
Sent: Wednesday, October 28, 2020 12:55 PM
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Subject: [CLC-Discussion] 713.346: Time to let Owners in on the party?

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Can anyone think of a compelling reason why 713.346 should not be amended to add a statutory cause of action (with a right to prevailing party fees) for an Owner who is harmed by a lienor's failure to pay a lower tier lienor?

And..... before anyone types it, yes, I know the owner should be getting all the proper releases in order to give themselves a proper payment defense but in my experience, far more than half of single family residential owners and most small commercial owners, do not get lien releases for progress payments or even final payments.  They usually do if a lender is involved, but not always.

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Robert E. Doan
Board Certified Construction Attorney
Supreme Court Certified Circuit Civil Mediator
231 N. Woodland Blvd.
DeLand, FL 32720
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Offices In Daytona Beach and DeLand

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