Steve Marlowe Named to Top Lawyer Publications

MARLOWE MCNABB, P. A. is pleased to announce Stephen D. Marlowe has been named to Tampa Bay magazine’s Tampa Bay’s Top Lawyers. This publication compiles its list of top lawyers in the area by working in conjunction with LexisNexis Martindale-Hubbell to find lawyers who have been rated by their peers to be AV Preeminent- the highest Martindale-Hubbell Peer Review Rating available. In addition, Mr. Marlowe has been named to Florida Trend’s Legal Elite as well as Super Lawyers magazine’s best lawyers for 2010. These publications select top lawyers in Florida through an extensive process of balloting, blue ribbon panel review and independent research. Selection of 5 percent of Florida attorneys is its goal.

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2010 Florida Legislative Final Review

Below is our final review of the Florida Legislature’s 2010 session.

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2010 Florida Legislative Update

SB 1964 – The Governor has vetoed SB 1964 which would have granted architects, landscape architects, interior designers, engineers and surveyors special protections from claims for malpractice which would not be available to other professions.

SB 7157 – Our initial enthusiasm for HB 7157 relating to the sales tax exemption for materials used in public projects has been tempered by a closer review of the bill language. It had appeared that this bill would allow for the purchase of tax exempt materials by the contractors and subcontractors in place of the cumbersome owner purchase process now in place. This is not correct. However, the good news is that where an owner direct purchase is used, the contractor is protected from a later claim by the Department of Revenue that the process did not meet the requirements for the tax exemption. If this is the case, the owner not the contractor will now be liable for the sales tax. To get this protection, it is important that a tax exemption certificate be obtained.

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Contractor Prequalification Requirements for Florida Public School Construction

As part of the federal government’s recent economic stimulus package, significant funds have become available for public school construction. In order to take advantage of these stimulus funds, contractors who wish to work on public school construction in Florida must become “prequalified.” See e.g., Florida Statute §1013.46. This article offers a brief overview of the purpose for prequalification, what it means and how it works.

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Cases of Import

Trial courts are required to apply the significant issues test to evaluate entitlement to attorney’s fees under § 713.29, Fla.Stat., even when the lienor obtains a judgment on the lien.

Before the Florida Supreme Court decided Trytek v. Gale Industries, Inc., 3 So. 3d 1194 (Fla. 2009), it was generally understood that a lienor who succeeded in obtaining a judgment in a lien foreclosure action was automatically entitled to recover its attorney’s fees as the prevailing party pursuant to §713.29, Fla.Stat. After Trytek this is no longer a foregone conclusion.

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Qualified Business Licenses (QBLs) no longer needed

For over a decade, construction businesses in Florida have been required to obtain and maintain Qualified Business Licenses (QBLs). No more. As of October 1, 2009, the amendment to Chapter 489 of the Florida Statutes eliminated all traces of QBLs — called “certificates of authority” within the statutes themselves. Among other things, the amendment clears up any ongoing confusion as to whether the lack of a QBL renders a business unlicensed according to Chapters 455 and 489.

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Including Overhead and Profit when Compiling Lien Amounts

Overbroad statements in case law have left some with the incorrect impression that contractors may not include charges for overhead and profit charges when compiling their lien amounts. The confusion is due in large part to Martin v. Jack Yanks Construction Co., 650 So. 2d 120, 121-22 (Fla. 3d DCA 1995) , where the court stated that “recovery for overhead and profit as separate items are not within the purview of the lien law.” However, when viewed in the context of the entire case and of the case law to which it cites, this statement stands for a different proposition.

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Custom-Made Materials in Construction Liens and Bonds

When it comes to materials, a contractor or supplier may generally only make a claim of lien or claim against a bond for materials actually delivered to and incorporated into the property. However, all too often, construction projects get cancelled or contractors get terminated before all materials are incorporated into the property. For contractors or suppliers with materials custom-made off-site (for instance, cabinetry), this poses a special problem, as custom-made material can rarely be sold at full value or used on other projects.

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Power of Arbitrator Upheld

The Courts have again addressed the powers of an arbitrator in Commercial Interiors Corporation of Boca Raton v. Pinkerton & Laws, Inc. This case involved a claim between a general contractor and a subcontractor. The contracts at issue had binding arbitration clauses. The Subcontractor initially brought suit for failure to pay and the general contractor filed a motion to compel arbitration and to abate the lawsuit. Subcontractor agreed and the case moved into the arbitration forum. In the arbitration, the general contractor filed a motion to dismiss claiming that the subcontractor was not entitled to recover any amounts under the subcontracts because the subcontracts were illegal. The general contractor asserted that the Subcontractor was not licensed and therefore under Florida Statute Sec. 489.128 it had no obligation to pay the Subcontractor. Apparently the work required a license under a local ordinance but was not required to be licensed under Florida Statutes.

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2009 Florida Legislative Final Review

We are pleased to present our annual review of the legislation impacting the construction industry. It is not intended to be an exhaustive review of all of the changes brought about by these pieces of legislation, but to highlight what appears to us to be the significant changes. The full text of the bills can be found on our website.

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Florida Bar
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