Florida Senate - 2015                              CS for SB 418
       
       
        
       By the Committee on Regulated Industries; and Senator Richter
       
       
       
       
       
       580-03238-15                                           2015418c1
    1                        A bill to be entitled                      
    2         An act relating to construction defect claims;
    3         amending s. 558.001, F.S.; revising legislative
    4         intent; amending s. 558.002, F.S.; revising the
    5         definition of the term “completion of a building or
    6         improvement”; amending s. 558.004, F.S.; providing
    7         additional requirements for a notice of claim;
    8         revising requirements for a response; revising
    9         provisions relating to production of certain records;
   10         amending ss. 718.203 and 719.203, F.S.; conforming
   11         provisions to changes made by the act; providing an
   12         effective date.
   13          
   14  Be It Enacted by the Legislature of the State of Florida:
   15  
   16         Section 1. Section 558.001, Florida Statutes, is amended to
   17  read:
   18         558.001 Legislative findings and declaration.—The
   19  Legislature finds that it is beneficial to have an alternative
   20  method to resolve construction disputes that would reduce the
   21  need for litigation as well as protect the rights of property
   22  owners. An effective alternative dispute resolution mechanism in
   23  certain construction defect matters should involve the claimant
   24  filing a notice of claim with the contractor, subcontractor,
   25  supplier, or design professional that the claimant asserts is
   26  responsible for the defect, and should provide the contractor,
   27  subcontractor, supplier, or design professional, and the insurer
   28  of the contractor, subcontractor, supplier, or design
   29  professional, with an opportunity to resolve the claim through
   30  confidential settlement negotiations without resort to further
   31  legal process.
   32         Section 2. Subsection (4) of section 558.002, Florida
   33  Statutes, is amended to read:
   34         558.002 Definitions.—As used in this chapter, the term:
   35         (4) “Completion of a building or improvement” means
   36  issuance of a certificate of occupancy, whether temporary or
   37  otherwise, that allows for occupancy or use of for the entire
   38  building or improvement, or an the equivalent authorization to
   39  occupy or use the improvement, issued by the governmental body
   40  having jurisdiction. and, In jurisdictions where no certificate
   41  of occupancy or the equivalent authorization is issued, the term
   42  means substantial completion of construction, finishing, and
   43  equipping of the building or improvement according to the plans
   44  and specifications.
   45         Section 3. Subsections (1), (4), (13), and (15) of section
   46  558.004, Florida Statutes, are amended to read:
   47         558.004 Notice and opportunity to repair.—
   48         (1)(a) In actions brought alleging a construction defect,
   49  the claimant shall, at least 60 days before filing any action,
   50  or at least 120 days before filing an action involving an
   51  association representing more than 20 parcels, serve written
   52  notice of claim on the contractor, subcontractor, supplier, or
   53  design professional, as applicable, which notice shall refer to
   54  this chapter. If the construction defect claim arises from work
   55  performed under a contract, the written notice of claim must be
   56  served on the person with whom the claimant contracted.
   57         (b) The notice of claim must describe the claim in
   58  reasonable detail sufficient to determine the general nature of
   59  each alleged construction defect and, if known, a description of
   60  the damage or loss resulting from the defect, if known. Based
   61  upon at least a visual inspection by the claimant or its agents,
   62  the notice of claim must identify the location of each alleged
   63  construction defect sufficiently to enable the responding
   64  parties to locate the alleged defect without undue burden. The
   65  claimant has no obligation to perform destructive or other
   66  testing for purposes of this notice.
   67         (c) The claimant shall endeavor to serve the notice of
   68  claim within 15 days after discovery of an alleged defect, but
   69  the failure to serve notice of claim within 15 days does not bar
   70  the filing of an action, subject to s. 558.003. This subsection
   71  does not preclude a claimant from filing an action sooner than
   72  60 days, or 120 days as applicable, after service of written
   73  notice as expressly provided in subsection (6), subsection (7),
   74  or subsection (8).
   75         (4) Within 15 days after service of a copy of the notice of
   76  claim pursuant to subsection (3), or within 30 days after
   77  service of the copy of the notice of claim involving an
   78  association representing more than 20 parcels, the contractor,
   79  subcontractor, supplier, or design professional must serve a
   80  written response to the person who served a copy of the notice
   81  of claim. The written response must shall include a report, if
   82  any, of the scope of any inspection of the property and, the
   83  findings and results of the inspection. The written response
   84  must include one or more of the offers or statements specified
   85  in paragraphs (5)(a)-(e), as chosen by the responding
   86  contractor, subcontractor, supplier, or design professional,
   87  with all of the information required for that offer or
   88  statement, a statement of whether the contractor, subcontractor,
   89  supplier, or design professional is willing to make repairs to
   90  the property or whether such claim is disputed, a description of
   91  any repairs they are willing to make to remedy the alleged
   92  construction defect, and a timetable for the completion of such
   93  repairs. This response may also be served on the initial
   94  claimant by the contractor.
   95         (13) This section does not relieve the person who is served
   96  a notice of claim under subsection (1) from complying with all
   97  contractual provisions of any liability insurance policy as a
   98  condition precedent to coverage for any claim under this
   99  section. However, notwithstanding the foregoing or any
  100  contractual provision, the providing of a copy of such notice to
  101  the person’s insurer, if applicable, shall not constitute a
  102  claim for insurance purposes unless the terms of the policy
  103  specify otherwise. Nothing in this section shall be construed to
  104  impair technical notice provisions or requirements of the
  105  liability policy or alter, amend, or change existing Florida law
  106  relating to rights between insureds and insurers except as
  107  otherwise specifically provided herein.
  108         (15) Upon request, the claimant and any person served with
  109  notice pursuant to subsection (1) shall exchange, within 30 days
  110  after service of a written request, which request must cite this
  111  subsection and include an offer to pay the reasonable costs of
  112  reproduction, any design plans, specifications, and as-built
  113  plans; any documents detailing the design drawings or
  114  specifications; photographs and, videos of the alleged
  115  construction defect identified in the notice of claim;, and
  116  expert reports that describe any defect upon which the claim is
  117  made; subcontracts; and purchase orders for the work that is
  118  claimed defective or any part of such materials; and maintenance
  119  records and other documents related to the discovery,
  120  investigation, causation, and extent of the alleged defect
  121  identified in the notice of claim and any resulting damages. A
  122  party may assert any claim of privilege recognized under the
  123  laws of this state with respect to any of the disclosure
  124  obligations specified in this chapter. In the event of
  125  subsequent litigation, any party who failed to provide the
  126  requested materials shall be subject to such sanctions as the
  127  court may impose for a discovery violation. Expert reports
  128  exchanged between the parties may not be used in any subsequent
  129  litigation for any purpose, unless the expert, or a person
  130  affiliated with the expert, testifies as a witness or the report
  131  is used or relied upon by an expert who testifies on behalf of
  132  the party for whom the report was prepared.
  133         Section 4. Subsection (3) of section 718.203, Florida
  134  Statutes, is amended to read:
  135         718.203 Warranties.—
  136         (3) “Completion of a building or improvement” means
  137  issuance of a certificate of occupancy, whether temporary or
  138  otherwise, that allows for occupancy or use of for the entire
  139  building or improvement, or an the equivalent authorization
  140  issued by the governmental body having jurisdiction., and In
  141  jurisdictions where no certificate of occupancy or equivalent
  142  authorization is issued, the term it means substantial
  143  completion of construction, finishing, and equipping of the
  144  building or improvement according to the plans and
  145  specifications.
  146         Section 5. Subsection (3) of section 719.203, Florida
  147  Statutes, is amended to read:
  148         719.203 Warranties.—
  149         (3) “Completion of a building or improvement” means
  150  issuance of a certificate of occupancy, whether temporary or
  151  otherwise, that allows for occupancy or use of for the entire
  152  building or improvement, or an the equivalent authorization
  153  issued by the governmental body having jurisdiction., and In
  154  jurisdictions where no certificate of occupancy or equivalent
  155  authorization is issued, the term it means substantial
  156  completion of construction, finishing, and equipping of the
  157  building or improvement according to the plans and
  158  specifications.
  159         Section 6. This act shall take effect October 1, 2015.