[RPPTL-constructionlaw] RPPTL: Construction Law Committee-:Surety & Insurance Subcommittee

Mon Aug 8 11:08:40 PDT 2011

          Agreed.  As a business model, sureties are clearly comfortable
with the effect of the holding of Federal Insurance.  It would be
interesting (perhaps frightening for those paying the premiums) to see
what the market effect on surety premiums would be if sureties faced the
same 10 year risk model contractors do for latent defects under
95.11(3)(c).  Perhaps, if sureties writing bonds in other states have a
similar 10 year exposure, we could gauge the effect on the existing
market.

Michael R. Gibbons  (Bio
<http://lowndes-law.com/our-people/michael-r-gibbons> )
Shareholder
Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
450 South Orange Avenue, 8th Floor
Orlando, FL 32801
Phone: 407-418-6378
Fax: 407-843-4444
email: michael.gibbons at lowndes-law.com
<mailto:michael.gibbons at lowndes-law.com> 
website: http://www.lowndes-law.com <http://www.lowndes-law.com/> 

________________________________

From: constructionlaw-bounces at lists.flabarrpptl.org
[mailto:constructionlaw-bounces at lists.flabarrpptl.org] On Behalf Of
Weintraub, Lee
Sent: Monday, August 08, 2011 1:54 PM
To: RPPTL constructionlaw
Subject: Re: [RPPTL-constructionlaw] RPPTL: Construction Law
Committee-:Surety & Insurance Subcommittee

Yeah, but the tradeoff is the surety loses the additional ten years of
exposure for latent defects that it would have faced under 95.11(3)(c)  

Click here <http://www.floridaconstructionlawauthority.com/>  to
subscribe to our complimentary Florida Construction Law Blog. 

  <http://www.becker-poliakoff.com/> 	 Lee A. Weintraub
Board Certified Construction Lawyer

	Becker & Poliakoff, P.A.
Emerald Lake Corporate Park
3111 Stirling Road
Fort Lauderdale, FL 33312-6525

954.985.4147 Phone
954.985.4176 Fax
LWeintraub at becker-poliakoff.com
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________________________________

From: constructionlaw-bounces at lists.flabarrpptl.org
[mailto:constructionlaw-bounces at lists.flabarrpptl.org] On Behalf Of
Gibbons, Michael
Sent: Monday, August 08, 2011 1:48 PM
To: RPPTL constructionlaw
Subject: Re: [RPPTL-constructionlaw] RPPTL: Construction Law Committee
-:Surety & Insurance Subcommittee

  If one assumes that Fla. Stat. s. 95.11(2)(b) is the applicable SOL on
a claim against a performance bond (as the parties and appellate courts
evidently did), then the Federal Insurance decision is understandable.
The puzzler for most, however, is why 95.11(2)(b) was utilized by
counsel and the courts for SOL analysis when the more specific
95.11(3)(c) exists and also applies.

  One of the notable illogical results of the Federal Insurance decision
is that liability on a performance bond for patent defects actually
exceeds liability on the underlying construction contract.  Assuming
that the more specific 4 year SOL applies to an action for breach of
contract on a construction contract, the SOL on a patent condition or
early manifesting latent condition would expire after 4 years while
exposure on a performance bond claim would exist for another year.  So,
liability on the bond exceeds liability on the underlying construction
contract (which turns centuries of surety law on its head).

Michael R. Gibbons  (Bio
<http://lowndes-law.com/our-people/michael-r-gibbons> )
Shareholder
Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
450 South Orange Avenue, 8th Floor
Orlando, FL 32801
Phone: 407-418-6378
Fax: 407-843-4444
email: michael.gibbons at lowndes-law.com
<mailto:michael.gibbons at lowndes-law.com> 
website: http://www.lowndes-law.com <http://www.lowndes-law.com/> 

________________________________

From: constructionlaw-bounces at lists.flabarrpptl.org
[mailto:constructionlaw-bounces at lists.flabarrpptl.org] On Behalf Of Ty
G. Thompson
Sent: Monday, August 08, 2011 1:09 PM
To: constructionlaw at lists.flabarrpptl.org
Subject: [RPPTL-constructionlaw] RPPTL: Construction Law Committee -:
Surety & Insurance Subcommittee

Hi everyone, 

I was on a conference call and couldn't get off to give the subcommittee
report.  Since I didn't have anything to report since last meeting,
perhaps this will do.  Chris, thank you very much for your presentation
and paper!

Ty G. Thompson

Board Certified Construction Attorney | Mills Paskert Divers

100 North Tampa Street, Suite 2010 | Tampa, Florida 33602

813-769-4802 (direct) | 813-229-3500 (firm) | 813-229-3502 (facsimile)

www.mpdlegal.com <blocked::http://www.mpdlegal.com/>  

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