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Past Issues - Fall 2000


Paralegal Joins Firm

Please welcome Stephanie Amiero, our new paralegal. She comes to us with a Bachelor's degree in Political Science from USF as well as a Certificate in Paralegal Studies from Paralegal Careers, Inc. Stephanie has more than 13 years of legal experience. She will be handling our document control activities, using CaseMap.

CaseMap is a database program which enables us to keep track and identify all pertinent documents, persons, and issues within each case. In just a few short keystrokes we can sort and analyze issues, witnesses and exhibits in preparation for deposition or trial. Stephanie joined us on July 5 and has already become proficient in the use of this new program. We are pleased to have her on board.

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Corporate Maintenance Program

Our new corporate maintenance program which was introduced in our Spring 2000 newsletter, has enjoyed a very positive response so far. The service includes bringing your corporate book to a current status and then notifying you each year when your next update is due.

We strongly believe that maintaining your corporate records is essential for the proper operation of your business and may help you avoid potential problems with creditors or the IRS should you be faced with an audit. If you have added new shareholders or elected new officers recently or have purchased or leased property, but have not held an annual meeting reflecting this activity, you may be in need of our corporate maintenance program.

The service includes:

  • Minutes for annual shareholders and directors meetings

  • Corporate resolutions

  • Notification of annual meeting date

  • Serving as your registered agent

Contact Marlowe McNabb for more information.

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Legislative Update - 2000 (by Steve Marlowe)

One of the more controversial aspects of this year's legislative session was an attempt, primarily spearheaded by the American Subcontractors Association, to place limits or eliminate retainage. While passage of this provision came close,in the end it was converted to a study to be performed by the Office of Program Policy Analysis and Government Accountability in consultation with the Legislative Committee on Intergovernmental Relations.

OPPAGA is to gather information from various government bodies and private entities relating to the positive and negative impacts of the current retainage system. In particular, it is to determine whether the traditional 10% retainage practice is equitable and whether there are viable alternatives to this practice. The report is due January 1, 2001.

Indemnity Obligations Limited

Under Florida Statutes Section 725.06, a party seeking indemnification from another for its own negligence was required to either limit the indemnity obligation to a specific dollar amount or to make a separate payment for the indemnity. The effect of this statute was that contracts were written segregating a part of the contract sum as payment for this indemnity.

This session, the Legislature amended 725.06 to eliminate the right to require that a party be indemnified for its own negligence, declaring that such contract provisions are void as against the public policy ofthe State of Florida. This change is effective for contracts entered into after July 1, 2000. House bill 220.

Grandfathering Provisions

Florida Statute Section 489.118 allowed certification of registered contractors. The requirements for this are: (1) valid local license, (2) passed a written examination, (3) five years of experience as a licensed contractor, (4) license has not been revoked or suspended within five years or assed a fine in excess of $500, (5) compliance with the insurance and financial requirements.

This year this provision was modified to add additional tests that will are acceptable for the examination provision. The tests added were by Experior Assessments, Professional Testing, Inc., or Assessment System, Inc. The right to make an application for grandfathering expires on November 1, 2004.

Uniform Building Code

The Uniform Florida Building Code was passed on the last day of the session. The bill moves the effective date of the code from January 1, 2001, to July 1, 2001. It also strengthened the mandate to maintain a statewide system with as little variation in local jurisdictions as is possible.

Essentially, an appeal system has been set up in which local jurisdictions wishing to adopt more restrictive provisions must go through. This is obviously designed to discourage these kinds of distinctions. The establishment of a product approval system is the last work that needs to be accomplished. This act takes effect October 1, 2000, and applies to all pools constructed on or after that date.

Residential Swimming Pool Safety Act

This bill imposes new restrictions on residential swimming pool owners. In order to pass final inspection, a residential swimming pool must meet one of the following criteria.

  • Be isolated from access to home by a pool barrier. The pool barrier must be at least 4' high and must be separate from any fence, wall or other enclosure surrounding the yard in most instances.

  • Be equipped with a pool safety cover

  • All doors and windows providing direct access to the pool from the home equipped with exit alarms.

  • All doors providing direct access from the home must be equipped with self-closing, self-latching devices, and a release mechanism at least 54" above the floor.System, Inc.

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Appellate Court Upholds Arbitration Provision (by Joe McNabb )

In a recent opinion, Florida's Second District Court of Appeal ruled that a contractor was wrongfully denied its demand to arbitrate by the trial court after it had been sued for allegedly breaching its construction contract. The appellate court found that the arbitration clause in the contract was governed by the Florida Arbitration Code and was valid, enforceable and irrevocable. The firm filed the appeal on behalf of the contractor after the trial court had refused to grant their motion to stay the litigation pending arbitration.

Although the arbitration provision was the standard AIA A-401 arbitration clause, the trial court had held that it was not enforceable because another clause in the construction contract required arbitration outside Florida if the parties could not agree on the arbitration forum. Under the Florida Arbitration Code, Florida courts have no statutory authority to compel arbitration in another jurisdiction.

Joe McNabb handled the appeal for the firm. He argued that arbitration is a favored means of dispute resolution and that courts are required to indulge every reasonable presumption in favor of arbitration. Further, he explained to the appellate court that every contract contains an implied condition and a duty of good faith and fair dealing in performance and enforcement of the contract. McNabb contended that the opposing party, which was a Florida corporation, violated that duty by refusing to agree on any arbitration forum, even after the contractor (an out-of-state corporation) had agreed to arbitrate in Florida. This obstinate refusal wrongfully triggered the out-of-state forum selection provision and improperly invalidated the arbitration agreement under the Florida Arbitration Code.

The appellate court agreed that the opposing party had acted in bad faith by initiating a lawsuit in Florida, on a contract that was governed by Florida law, and then refusing to arbitrate in Florida solely for the purpose of invalidating the arbitration provision. The court also restated guidance from a previous opinion that "[a]rbitration is especially appropriate in situations involving issues that are unique to certain industries and which require specialized knowledge for their resolution...the construction industry is such an industry." Finding that the trial court erred in not ordering a stay of the litigation until the dispute was resolved through arbitration, the appellate court reversed the trial court's order and remanded it back to the trial court for entry of an order to stay the litigation pending arbitration. As an added bonus, the appellate court ordered the opposing party to pay the attorneys' fees and costs incurred by the contractor for the appeal.

If you need additional information on any of these bills, please contact our office and we will be happy to assist you.

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