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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>Cypress v. Bergeron, 5D13-4102 (May 8, 2015).<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>The 5<sup>th</sup> DCA has created an unnecessary rule for when a construction contract is complete. They have created what can only be called a bright-line rule. The contract between an Owner and a Contractor is complete upon payment to the Contractor.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>A bright line rule should work all the time and be equitable to both parties if, as the court said, the statute language is unambiguous. <o:p></o:p></span></p><p class=MsoNormal><i>“</i><i><span style='font-size:10.0pt;font-family:"Times New Roman","serif";color:#252525'>[A]</span></i><span style='font-size:10.5pt;font-family:"Arial","sans-serif";color:#252525'> </span><span class=cosearchterm7><i><span style='font-size:10.0pt;font-family:"Times New Roman","serif";font-weight:normal'>bright</span></i></span><b><i><span style='font-size:10.0pt;font-family:"Times New Roman","serif";color:#252525'>-</span></i></b><span class=cosearchterm7><i><span style='font-size:10.0pt;font-family:"Times New Roman","serif";font-weight:normal'>line</span></i></span><i><span style='font-size:10.0pt;font-family:"Times New Roman","serif";color:#252525'> test will ordinarily require only a cursory review of the record by a trial court.” [A] </span></i><i><span style='font-size:10.0pt;font-family:"Times New Roman","serif"'>bright-line rule [is] appealing in that it establishes a rule that is easy to apply and relieves the trial court and litigants of the burden of determining and guessing as to whether an activity is merely passive or active.” <u>Chemrock Corp. v. Tampa Elec. Co.</u>, 71 So. 3d 786, 791-92 (Fla. 2011).</span></i><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>By holding that the date of final payment to the contractor signifies the contract completion the Court add ambiguity to the mix. Further, this ruling ignores three things in my mind:<o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='color:#1F497D'><span style='mso-list:Ignore'>1)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='color:#1F497D'> Reality – the facts on the ground. For example: In this case, had the Owner and/or the A/E accepted the buildings and were they being used and occupied by the Owner? At the time of submitting the final pay application did anyone disagree that the work was done? <o:p></o:p></span></p><p class=MsoListParagraph style='margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1'><![if !supportLists]><span style='color:#1F497D'><span style='mso-list:Ignore'>a.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='color:#1F497D'>Was the 3 day lag for payment simply a “passive” ministerial act whose timing was dependent upon the postal service? <o:p></o:p></span></p><p class=MsoListParagraph style='margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1'><![if !supportLists]><span style='color:#1F497D'><span style='mso-list:Ignore'>b.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='color:#1F497D'>The pay app was delivered on Wednesday and “final payment” was made on Friday. So, was the check written on Friday? Was it “deposited” or was it “settled” on Friday at the bank? Was it “mailed” on Friday? Was it “signed” on Friday? Or was it handed to the contractor on Friday? <o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='color:#1F497D'>If the Court is creating a bright-line rule about when a </span><span style='color:#1F497D'>construction</span><span style='color:#1F497D'> contract is complete (“Completion of the contract means completion of performance by both sides of the contract”) then we need more direction than “payment was made.” <o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='color:#1F497D'>The thing is, t</span><span style='color:#1F497D'>he trial court can hold an evidentiary hearing. The DCA should </span><span style='color:#1F497D'>have punted and said that the date of completion of the contract is fact dependent. <o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='color:#1F497D'><span style='mso-list:Ignore'>2)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='color:#1F497D'>The Fudge Factor – Owners now get to determine the contract completion date (and this is just as unfair as allowing the GC to determine it by sending the final pay app early). Would the Court have ruled differently if the Owner took 90 days to pay? If they would have ruled differently, then this is a bad bright-line rule. <o:p></o:p></span></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='color:#1F497D'><span style='mso-list:Ignore'>3)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='color:#1F497D'>Slow Pay Incentive - Any reason for an Owner to pay quickly given this ruling? Will this ruling delay final payments in some regards? <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Does the Court’s ruling work if, say, the Owner and GC are at odds at the end of the contract? <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Let’s try an everyday construction law example:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>GC says they are done and sends final pay app and <u>everything else</u> required by statute and the contract.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Owner says GC is not done and withholds payment claiming some sticking point (how many times does that happen?). <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>For the next six months both sides argue about something. (I had one where it was door numbers in the wrong typeface).<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>After six months they all realize the lawyers are costing too much money and they just drop the matter.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>No written settlement, no promises, no extra performance by either side; they just decide to stop fighting.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>The Owner sends the final payment. Is the contract complete now? Or was it complete six months earlier?<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Does the 5<sup>th</sup> DCA’s bright-line rule accomplish justice if, later on in a repose fight, the Owner gets to claim an extra 6 months?<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='color:#244061'>Jeffrey L. Price, Esq.<br>Florida Bar Board Certified - Construction Law <br>Florida Civil-law Notary</span><span style='font-size:8.0pt;color:#244061'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#244061'>Niesen|Price|Worthy|Campo, PA<br>5216 SW 91st Drive Gainesville, FL 32608<br>Ph (352) 373-9031 Fax (352) 373-9099<o:p></o:p></span></p><p class=MsoNormal><span style='color:#244061'><a href="http://npw-law.com/">http://npw-law.com</a></span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:black'><img border=0 width=125 height=125 id="Picture_x0020_1" src="cid:image003.png@01D08BD7.4158EA00" alt=npw-logo-circle-orange-medium><img border=0 width=58 height=76 id="_x0000_i1027" src="cid:image005.jpg@01D08BD7.4158EA00" alt="ConstructionLaw small logo"> </span><span style='color:#1F497D'><img border=0 width=80 height=80 id="Picture_x0020_2" src="cid:image007.jpg@01D08BD7.4158EA00" alt="http://www.boyd-jenerette.com/blog/wp-content/uploads/2012/05/nacln12.gif"></span><span style='color:black'> </span><span style='font-size:8.0pt;color:#244061'>This communication is intended for the sole use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this communication is not the intended recipient, employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any review, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please immediately notify me by telephone, delete this communication, and destroy any copies of it. Thank you.<o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org] <b>On Behalf Of </b>Roberts, Hardy L.<br><b>Sent:</b> Friday, May 08, 2015 2:14 PM<br><b>To:</b> CLC Discussion (clc-discussion@lists.flabarrpptl.org)<br><b>Subject:</b> [CLC-Discussion] CLC -- New Statute of Repose Decision<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><span style='color:black'>The Fifth District held today (in the attached opinion that is not yet final) that the statute of repose commenced to run when a construction contract was completed rather than when construction was completed. The parties argued over whether the statute of repose began to run from the date the contractor made its final application for payment or whether the period ran from the date the final payment was made. The Fifth DCA held that the contract at issue was complete when the final payment was made and that the statute began to run on that later date.<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><img border=0 width=190 height=53 id="_x0000_i1025" src="cid:image008.jpg@01D08BC4.6E236A50" alt="Carlton Fields Jorden Burt, P.A."><br>Hardy L. Roberts</span></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><br>Attorney at Law<br>Board Certified in Construction Law by the Florida Bar<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><br>4221 W. Boy Scout Blvd., Ste. 1000<br>Tampa, Florida 33607-5780 <br>Direct: 813.229.4105 | Fax: 813.229.4133<br><br><a href="mailto:HRoberts@cfjblaw.com">HRoberts@cfjblaw.com</a> | <a href="http://www.cfjblaw.com/">www.CFJBLaw.com</a> <br><a href="http://www.cfjblaw.com/hroberts/">bio</a> | <a href="http://www.cfjblaw.com/FCWSite/Features/_Attorneys/vCard.aspx?attorney=176">vcard</a> | <a href="http://www.linkedin.com/profile/view?id=249761797&trk=nav_responsive_tab_profile">LinkedIn</a> <br><br><i>Confidential: This e-mail contains a communication protected by the attorney-client privilege or constitutes work product. If you do not expect such a communication please delete this message without reading it or any attachment and then notify the sender of this inadvertent delivery.</i> </span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>