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Is Florida Statutes Chapter 558 in Need of Another Overhaul?
Chapter 558 of the Florida Statutes was enacted by the Florida Legislature in 2003 as "an alternative method to resolve construction disputes that would reduce the need for litigation as well as protect the rights of property owners."
February 08, 2024 at 01:35 PM
7 minute read
Special SectionsChapter 558 of the Florida Statutes was enacted by the Florida Legislature in 2003 as "an alternative method to resolve construction disputes that would reduce the need for litigation as well as protect the rights of property owners." Has it actually reduced the need for litigation? Or is it just a hoop that property owners have to jump through on the way to litigation? The remainder of the Legislative findings and declaration for the statute states, "An effective alternative dispute resolution mechanism in certain construction defect matters should involve the claimant filing a notice of claim with the contractor, subcontractor, supplier, or design professional that the claimant asserts is responsible for the defect, and should provide the contractor, subcontractor, supplier, or design professional, and the insurer of the contractor, subcontractor, supplier, or design professional, with an opportunity to resolve the claim through confidential settlement negotiations without resort to further legal process."
It sounds like a good idea, but does it compel a property owner into a process that affords an opportunity to resolve a claim through confidential settlement negotiations. Or does it provide property owners with a tactic to gain a strategic advantage over contractors, subcontractors, suppliers, and design professionals by making them think there is an opportunity to resolve the claim short of litigation. Nothing in Chapter 558 stops a property owner from suing, even before the 558 process is completed, and nothing stops a claimant from removing and replacing the allegedly defective elements of the construction before a contractor, subcontractor, supplier, or design professional has a chance to fully investigate the issue.
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