Menu

First District Court of Appeal Interprets Florida's Construction Lien Law

Construction   |   Appellate & Trial Support   |   February 1, 2016
Download Download   
Share Share Page

The First District Court of Appeal recently issued an opinion in JAX Utilities Management, Inc. v. Hancock Bank, 164 So. 3d 1266 (Fla. 1st DCA 2015) that has significant implications on a bank’s liability with respect to construction loan disbursements. More specifically, the appellate decision interprets Florida Statute section 713.3471, which establishes that if a lender stops giving advances on a construction loan before all of the proceeds have been distributed, then it will not be liable to a contractor, provided the lender gives the contractor proper notice within five (5) business days of the lender’s decision. The statute also sets guidelines for liability in the event such notice is not given.

Read: First District Court of Appeal Interprets Florida's Construction Lien Law

___

Originally appeared in the Orange County Bar Association's The Briefs, [February 2016 Vol. 84 No. 2]. It is published here by permission of the Orange County Bar Association. All rights reserved.


©2020 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.

Subscribe to Publications

Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.