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<DIV dir=ltr align=left><SPAN class=233320318-08082011><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=233320318-08082011><FONT color=#0000ff
size=2 face=Arial>
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.</FONT></SPAN></DIV>
<DIV><FONT color=#0000ff size=2 face=Arial></FONT> </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>
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<DIV> </DIV><BR>
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<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>Weintraub, Lee<BR><B>Sent:</B> Monday, August 08, 2011 1:54 PM<BR><B>To:</B>
RPPTL constructionlaw<BR><B>Subject:</B> Re: [RPPTL-constructionlaw] RPPTL:
Construction Law Committee-:Surety & Insurance
Subcommittee<BR></FONT><BR></DIV>
<DIV></DIV>
<DIV dir=ltr align=left><SPAN class=631085317-08082011><FONT color=#0000ff
size=2 face=Arial>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) </FONT></SPAN></DIV><BR>
<DIV dir=ltr lang=en-us class=OutlookMessageHeader align=left></DIV><BR><FONT
size=2 face=Arial><A
href="http://www.floridaconstructionlawauthority.com/"><STRONG>Click
here</STRONG></A> to subscribe to our complimentary Florida Construction
Law Blog.</FONT> <BR>
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<TD bgColor=#e7ddbf height=30 vAlign=center align=middle><A
href="http://www.becker-poliakoff.com/" target=_blank><IMG border=0
src="cid:233320318@08082011-24F9" width=90 height=37></A></TD>
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<P style="TEXT-ALIGN: justify" class=MsoNormal><FONT
color=#003768><B><SPAN style="FONT-FAMILY: Verdana; FONT-SIZE: 10pt">Lee
A. Weintraub</SPAN></B><BR><SPAN
style="FONT-FAMILY: Verdana; FONT-SIZE: 8pt">Board Certified Construction
Lawyer<BR></SPAN></FONT></P></TD></TR>
<TR>
<TD width=100></TD>
<TD vAlign=top align=left><SPAN
style="FONT-FAMILY: Verdana; FONT-SIZE: 8pt">Becker & Poliakoff,
P.A.<BR>Emerald Lake Corporate Park<BR>3111 Stirling Road<BR>Fort
Lauderdale, FL 33312-6525<BR><BR>954.985.4147 Phone<BR>954.985.4176
Fax<BR>LWeintraub@becker-poliakoff.com<A></A><BR><A
href="http://www.becker-poliakoff.com">www.becker-poliakoff.com</A><BR></SPAN><BR></TD></TR></TBODY></TABLE>
<DIV dir=ltr lang=en-us class=OutlookMessageHeader align=left></DIV><BR><FONT
size=1 face=Verdana>Our clients' total satisfaction is our #1 priority.
</FONT><FONT size=1><FONT size=1><FONT face=Verdana>The Becker & Poliakoff
<STRONG>Client CARE Center </STRONG>is available for questions, concerns and
suggestions. Please contact us at 954.364.6090 or via email at </FONT><A
href="mailto:CARE@becker-poliakoff.com"><FONT
face=Verdana>CARE@becker-poliakoff.com</FONT></A><FONT
face=Verdana>. </FONT></FONT><BR></FONT>
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<DIV dir=ltr lang=en-us class=OutlookMessageHeader align=left></DIV>
<DIV dir=ltr lang=en-us class=OutlookMessageHeader align=left><FONT size=2
face=Tahoma><B>From:</B> constructionlaw-bounces@lists.flabarrpptl.org
[mailto:constructionlaw-bounces@lists.flabarrpptl.org] <B>On Behalf Of
</B>Gibbons, Michael<BR><B>Sent:</B> Monday, August 08, 2011 1:48
PM<BR><B>To:</B> RPPTL constructionlaw<BR><B>Subject:</B> Re:
[RPPTL-constructionlaw] RPPTL: Construction Law Committee -:Surety &
Insurance Subcommittee<BR></FONT><BR></DIV>
<DIV></DIV><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:233320318@08082011-2500"><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>
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