Fla.'s New Statute of Repose Is Good News for Construction Industry
The new law clarifies "completion of the contract" to mean the later of "the date of final performance of all the contracted services" or "the date that final payment for such services becomes due," regardless of the date final payment is made. The act took effect July 1, and applies to causes of action that accrue on or after that date, write K. Stefan Chin and Meredith Reynolds.
August 01, 2017 at 11:15 AM
5 minute read
On June 14, Gov. Rick Scott signed House of Representatives Bill 377 into law. This new law clarifies one of the four triggers for the running of Florida's 10-year Statute of Repose for commencing a lawsuit founded on the design, planning, or construction of an improvement to real property, and is of significance to those in the construction industry, including owners, engineers, architects and contractors.
Specifically, the new law clarifies “completion of the contract” to mean the later of “the date of final performance of all the contracted services” or “the date that final payment for such services becomes due,” regardless of the date final payment is made. The act took effect July 1, and applies to causes of action that accrue on or after that date.
The new law resolves a problem for engineers, architects and contractors created by a relatively recent Florida court ruling in Cypress Fairway Condominium v. Bergeron Construction, 164 So. 3d 706 (Fla. 5th DCA 2015), which held the Statute of Repose to commence as late as when the owner made final payment.
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