<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML xmlns="http://www.w3.org/TR/REC-html40" xmlns:v =
"urn:schemas-microsoft-com:vml" xmlns:o =
"urn:schemas-microsoft-com:office:office" xmlns:w =
"urn:schemas-microsoft-com:office:word" xmlns:m =
"http://schemas.microsoft.com/office/2004/12/omml"><HEAD>
<META content="text/html; charset=us-ascii" http-equiv=Content-Type>
<META name=GENERATOR content="MSHTML 8.00.6001.18702">
<STYLE>@font-face {
font-family: Cambria Math;
}
@font-face {
font-family: Calibri;
}
@page Section1 {size: 8.5in 11.0in; margin: 1.0in 1.0in 1.0in 1.0in; }
P.MsoNormal {
MARGIN: 0in 0in 0pt; FONT-FAMILY: "Calibri","sans-serif"; FONT-SIZE: 11pt
}
LI.MsoNormal {
MARGIN: 0in 0in 0pt; FONT-FAMILY: "Calibri","sans-serif"; FONT-SIZE: 11pt
}
DIV.MsoNormal {
MARGIN: 0in 0in 0pt; FONT-FAMILY: "Calibri","sans-serif"; FONT-SIZE: 11pt
}
A:link {
COLOR: blue; TEXT-DECORATION: underline; mso-style-priority: 99
}
SPAN.MsoHyperlink {
COLOR: blue; TEXT-DECORATION: underline; mso-style-priority: 99
}
A:visited {
COLOR: purple; TEXT-DECORATION: underline; mso-style-priority: 99
}
SPAN.MsoHyperlinkFollowed {
COLOR: purple; TEXT-DECORATION: underline; mso-style-priority: 99
}
SPAN.EmailStyle17 {
FONT-FAMILY: "Calibri","sans-serif"; COLOR: windowtext; mso-style-type: personal-compose
}
.MsoChpDefault {
FONT-SIZE: 10pt; mso-style-type: export-only
}
DIV.Section1 {
page: Section1
}
</STYLE>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></HEAD>
<BODY lang=EN-US link=blue vLink=purple>
<BR>
<BR>
<DIV dir=ltr align=left><SPAN class=059562417-08082011><FONT color=#0000ff
size=2 face=Arial> 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
</FONT></SPAN><SPAN class=059562417-08082011><FONT color=#0000ff size=2
face=Arial>95.11(3)(c) exists and also applies.</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=059562417-08082011><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=059562417-08082011><FONT color=#0000ff
size=2 face=Arial> 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).</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=059562417-08082011><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV> </DIV><!-- Converted from text/rtf format -->
<P align=left><SPAN lang=en-us><B>Michael R. Gibbons (<A
href="http://lowndes-law.com/our-people/michael-r-gibbons">Bio</A>)<BR>Shareholder<BR></B></SPAN><SPAN
lang=en-us><FONT color=#008000 size=2>Lowndes, Drosdick, Doster, Kantor &
Reed, P.A.<BR></FONT></SPAN><SPAN lang=en-us><FONT color=#008000 size=2>450
South Orange Avenue, 8th Floor<BR></FONT></SPAN><SPAN lang=en-us><FONT
color=#008000 size=2>Orlando, FL 32801<BR></FONT></SPAN><SPAN lang=en-us><FONT
color=#008000 size=2>Phone: 407-418-6378<BR></FONT></SPAN><SPAN lang=en-us><FONT
color=#008000 size=2>Fax: 407-843-4444<BR></FONT></SPAN><SPAN lang=en-us><FONT
color=#008000 size=2>email:</FONT> <A
href="mailto:michael.gibbons@lowndes-law.com"><FONT color=#0000ff
size=2>michael.gibbons@lowndes-law.com</FONT></A></SPAN><BR><SPAN
lang=en-us><FONT color=#008000 size=2>website:</FONT> <A
href="http://www.lowndes-law.com/"><FONT color=#0000ff
size=2>http://www.lowndes-law.com</FONT></A></SPAN><BR><BR>
<IMG src="cid:059562417@08082011-24EB"><BR></P>
<DIV> </DIV><BR>
<DIV dir=ltr lang=en-us class=OutlookMessageHeader align=left>
<HR tabIndex=-1>
<FONT size=2 face=Tahoma><B>From:</B>
constructionlaw-bounces@lists.flabarrpptl.org
[mailto:constructionlaw-bounces@lists.flabarrpptl.org] <B>On Behalf Of </B>Ty G.
Thompson<BR><B>Sent:</B> Monday, August 08, 2011 1:09 PM<BR><B>To:</B>
constructionlaw@lists.flabarrpptl.org<BR><B>Subject:</B> [RPPTL-constructionlaw]
RPPTL: Construction Law Committee -: Surety & Insurance
Subcommittee<BR></FONT><BR></DIV>
<DIV></DIV>
<DIV class=Section1>
<P class=MsoNormal>Hi everyone, <o:p></o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal>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!<o:p></o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal><SPAN style="COLOR: black">Ty G.
Thompson<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN style="COLOR: black">Board Certified Construction
Attorney</SPAN> | <SPAN style="COLOR: black">Mills Paskert
Divers</SPAN><o:p></o:p></P>
<P class=MsoNormal><SPAN style="COLOR: black">100 North Tampa Street, Suite 2010
| Tampa, Florida 33602</SPAN><o:p></o:p></P>
<P class=MsoNormal><SPAN style="COLOR: black">813-769-4802 (direct) |
813-229-3500 (firm) | 813-229-3502 (facsimile)</SPAN><o:p></o:p></P>
<P class=MsoNormal><A title=http://www.mpdlegal.com/
href="blocked::http://www.mpdlegal.com/"><SPAN
style="COLOR: navy">www.mpdlegal.com</SPAN></A> <o:p></o:p></P>
<P class=MsoNormal><o:p> </o:p></P>
<P class=MsoNormal>Confidentiality Disclaimer: This email message and any
attachments are private communications sent by a law firm, Mills Paskert Divers,
and may contain confidential or legally privileged information meant solely for
the intended recipient. If you are not the intended recipient, you are hereby
notified that any use, dissemination, distribution or copying of this
communication is strictly prohibited. Please notify the sender immediately by
replying to this message, then delete the email and any attachments from your
system. Thank you.<o:p></o:p></P>
<P class=MsoNormal><o:p> </o:p></P></DIV>
<BR>
<BR>
<p style="font-size:12px">
<B>Notice of Confidentiality:</B> This e-mail communication and the attachment(s) hereto, if any, are intended solely for the information and use of the addressee(s) identified above and may contain information which is legally privileged from disclosure and/or otherwise confidential. If a recipient of this e-mail communication is not an addressee (or an authorized representative of an addressee), such recipient is hereby advised that any review, disclosure, reproduction, re-transmission or other dissemination or use of this e-mail communication (or any information contained herein) is strictly prohibited. If you are not an addressee and have received this e-mail communication in error, please advise the sender of that circumstance either by reply e-mail or by telephone at (800) 356-6818, immediately delete this e-mail communication from any computer and destroy all physical copies of same.
<BR><BR>
<B>Replies Filtered:</B> Any incoming reply to this e-mail communication or other e-mail communication to us will be electronically filtered for "spam" and/or "viruses." That filtering process may result in such reply or other e-mail communications to us being quarantined (i.e., potentially not received at our site at all) and/or delayed in reaching us. For that reason, we cannot guarantee that we will receive your reply or other e-mail communications to us and/or that we will receive the same in a timely manner. Accordingly, you should consider sending communications to us which are particularly important or time-sensitive by means other than e-mail.
<BR><BR>
<B>Notice Under U.S. Treasury Department Circular 230:</B> To the extent that this e-mail communication and the attachment(s) hereto, if any, may contain written advice concerning or relating to a Federal (U.S.) tax issue, United States Treasury Department Regulations (Circular 230) require that we (and we do hereby) advise and disclose to you that, unless we expressly state otherwise in writing, such tax advice is not written or intended to be used, and cannot be used by you (the addressee), or other person(s), for purposes of (1) avoiding penalties imposed under the United States Internal Revenue Code or (2) promoting, marketing or recommending to any other person(s) the (or any of the) transaction(s) or matter(s) addressed, discussed or referenced herein. Each taxpayer should seek advice from an independent tax advisor with respect to any Federal tax issue(s), transaction(s) or matter(s) addressed, discussed or referenced herein based upon his, her or its particular circumstances.
[v4.30]
</p></BODY></HTML>