ARTICLES

CONTRACTOR IS NOT REQUIRED TO SERVE NOTICE TO OWNER ON SUBSEQUENT OWNER AFFILIATED WITH PRIOR OWNER

By: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC A lienor, except a laborer, who does not have a direct contract with the owner of real property to furnish improvements, is required to serve a Notice to Owner in order to have a valid construction lien. A lienor who does have a direct contract with the owner is not required to serve a Notice to Owner. However, does a contractor have to serve a notice to owner on a subsequent owner during construction, if the subsequent owner is affiliated with the prior owner? The appellate court, in Marble Unlimited,

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THE HIGH THRESHOLD TO OVERCOME AN EMPLOYER’S WORKER’S COMPENSATION IMMUNITY: A “VIRTUALLY CERTAIN TO RESULT IN INJURY” STANDARD

By: Stearns, Roberts & Guttentag, LLC In Florida, the legislature has enacted statutes that provide a strict liability of compensation for workers in which the injured receives a guarantee of rapid compensation for work related injuries. In return, however, an injured is precluded from raising any common law negligence claims. Instead, an injured is required to establish a high threshold to overcome the immunity granted to the employer under an “intentional tort” theory. The immunity standard for an employee is somewhat lower, requiring the injured to prove “gross negligence.” In Boston v. Publix Super Markets, Inc., 2013 WL 1810630 (Fla.

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COURTS READ EACH INSURANCE POLICY AS WHOLE IN DETERMINING WHETHER COVERAGE EXISTS

By: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC Insurance policies are required to specify terms such as the names of the parties, the subject of the insurance, the risks insured against, the term of the policy, the premium, and the conditions pertaining to the insurance.  Insurance policies also contain exclusions defining circumstances under which the insurance coverage does not apply. Certain policy terms and exclusions were recently analyzed in the case of Danny’s Backhoe Service, LLC v. Auto Owners Insurance Company, 2013 WL 2350166 (Fla. 1st DCA 2013). In Danny’s Backhoe Service, LLC, the insurer issued an excavation

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PARTY COMPELLED TO ARBITRATE VIA ITS AGENT’S EXECUTION OF ARBITATION AGREEMENT

By: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC A party who has not signed an arbitration agreement may be compelled to arbitrate if a signatory signed the arbitration agreement on behalf of the party as the party’s agent. In Miccosukee Tribe of Indians of Florida v. Cypress, 2013 WL 2158422 (S.D.Fla 2013), Morgan Stanley Smith Barney, LLC (“Morgan Stanley”) and the Miccosukee Tribe of Indians of Florida (the “Miccosukee Tribe”) allegedly entered into Client Agreements under which Morgan Stanley agreed to provide customer banking and investment services to the Miccosukee Tribe.  Billy Cypress (“Cypress”), the Chairman of the

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PROHIBITION AGAINST ASSIGNMENT MAY BE WAIVED BY PARTY’S CONDUCT

BY: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC Many construction contracts contain terms that prohibit an assignment by the party performing the work, unless written consent to the assignment is provided by the party paying for the work. A prohibition against an assignment may also be waived by the conduct of the parties. In addition, depending on the language of the agreement between an assignor and assignee, an assignee may assume the obligations and liabilities of the assignor. In Weitz Company, LLC v. MCW Acquisition, LLC, 2013 WL 3336857 (Fla. 3rd DCA 2013), the general contractor on a

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CONTRACTUAL CONDITION MAY BE WAIVED BY PARTY’S CONDUCT OR ACTS

By: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC The waiver of a contractual condition may be inferred from the conduct or acts of a party, which puts the other party off his guard, leading him to believe that such condition has been waived. In GMT Construction, Inc. v. Gulfside Supply, Inc., 2013 WL 2494715 (Fla. 3rd DCA 2013), Gulfside Supply, Inc. (“Gulfside”), a roofing supply company, supplied roofing materials to GMT Construction, Inc. (“GMT”) and Anderson Roofing.  GMT referred some of its roofing work to Anderson Roofing and Kent Spires (“Spires”). Spires was the vice-president of Anderson Roofing. 

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CORPORATE ENTITIES CANNOT BE COMPELLED TO PRODUCE DOCUMENTS THAT DO NOT EXIST

By: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC Florida Statute, Sections 607.1602 and 608.4101 allow shareholders and members of corporations and limited liability companies (LLCs) access to certain books and records of such entities. In Omes v. Ultra Enterprises, Inc., 2013 WL 3336867 (Fla. 3rd DCA 2013), an individual who held various positions and a minority ownership interest in certain corporations and LLCs filed a lawsuit against the entities for the unlawful denial of access to records based on the above-referenced statutes.  In the case, the trial court granted the appointment of an independent certified public account to

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ENFORCEABILITY OF RESTRICTIVE COVENANTS IN EMPLOYMENT AGREEMENTS

By: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC Contracts that restrict or prohibit competition during or after the employment term are generally enforceable, so long as such contracts are reasonable in time, area, and line of business, and are in writing signed by the person against whom enforcement is sought. A party seeking to enforce a restrictive covenant, such as a non-compete provision in a contract, must prove the existence of one or more legitimate business interests justifying the covenant, and that the covenant is reasonably necessary to protect those legitimate business interests. The case of ThyssenKrupp Elevator

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CONTRACTOR’S LACK OF EVIDENCE OF SUBCONTRACTOR’S DELAY PRECLUDES CONTRACTOR FROM WITHHOLDING PAYMENT FROM SUBCONTRACTOR

By: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC Before any contract of more than $100,000.00 is awarded for the construction, alteration or repair of any public building or public work of the Federal Government, a payment bond must be furnished to the Government, which becomes binding when the contract is awarded. Such bond is known as a Miller Act Bond. The case of W.W. Gay Mechanical Contractor, Inc. v. Walbridge Aldinger Company, 2013 WL 5859456 (11th Cir. 2013), involves a dispute between a Subcontractor and a general contractor (“Contractor”), together with the Contractor’s sureties, over a construction project

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CONTRACTS DO NOT EXIST WITHOUT CONSIDERATION

By: Richard E. Guttentag, Esq., Stearns, Roberts & Guttentag, LLC There are three elements of an express contract – offer, acceptance and consideration. The case ofRekal Company, Inc. v. PGT Industries, Inc., 2013 WL 5487370 (M.D.Fla. 2013) examines the element of consideration.  In Rekal Company, Inc., PGT Industries, Inc. (“PGT”) a manufacturer and distributer of doors, windows and enclosure systems owned the registered trademark EZE-BREEZE.  In May 2009, PGT notified Rekal Company, Inc. (“Rekal”) that Rekal met the standards required of a PGT distributor for the purchase and distribution of many of PGT’s product lines.  In connection with its distribution

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