CopyCited 2 times | Published | Court of Appeals for the Eleventh Circuit | 2016 U.S. App. LEXIS 14005, 2016 WL 4087782
...The Florida Legislature said it passed Chapter 558 because it was “beneficial to
have an alternative method to resolve construction disputes that would reduce the
need for litigation as well as protect the rights of property owners.” Fla. Stat. §
558.001.
In this appeal, we must decide whether Chapter 558’s statutorily prescribed
notice and repair process constitutes a “suit” under a commercial general liability
(CGL) insurance policy, so as to trigger the insurer’s duty to defend....
...In support of this argument, ACI notes that the Florida
Legislature described the Chapter 558 process as an “alternative method to resolve
construction disputes,” and an “alternative dispute resolution mechanism.” Id. at
50 (quoting § 558.001)....
...The district court found
this conclusion to be consistent with the Florida Supreme Court’s analysis in
Raymond James.
Based on this definition, the district court determined that the Chapter 558
notice and repair process was aptly described by the Florida Legislature in §
558.001 as a “mechanism” and not a “proceeding.” This mechanism was meant to
guide parties to enter into discussions about a possible resolution with one another,
13
Case: 15-1281...
CopyPublished | District Court, S.D. Florida | 2015 U.S. Dist. LEXIS 72466, 2015 WL 3539755
...lve the claimant filing a notice of claim with the contractor ... that the claimant asserts is responsible for the defect, and should provide the contractor ... with an opportunity to resolve the claim without resort to further legal process. F.S.A. § 558.001....
...Applying Plaintiffs general argument to the current definition, Plaintiff essentially argues that since a claimant must serve the Chapter 558 Notice before commencing a lawsuit, it is an act or step that is part of a larger action or a step taken in the prosecution of an action. The Court disagrees. In Section 558.001, the Legislature set forth its “findings and declaration” that it is beneficial to have an alternative method to resolve construction disputes that would reduce the need for litigation as well as protect the rights of property owners....
CopyPublished | Florida 3rd District Court of Appeal
...Importantly, the legislative findings with regard to
Chapter 558 show that the statutory presuit procedural requirements are
“aimed to encourage the . . . settle[ment] [of] claims for construction defects
without resorting to litigation.” Id. at 278. Particularly, section 558.001, titled
“Legislative findings and declaration,” states as follows:
The Legislature finds that it is beneficial to have an alternative
method to resolve construction disputes that would reduce the
need for l...
CopyPublished | Supreme Court of Florida
...Specifically, a claimant must “serve written notice of
claim on the contractor, subcontractor, supplier, or design professional, as
applicable” before the claimant may file an action for a construction defect.
§
558.004(1), Fla. Stat. (2012).
When Altman received Sapphire’s first notice of claim, section
558.001,
Florida Statutes (2012), provided the following legislative findings and
declaration:
The Legislature finds that it is beneficial to have an alternative
method to resolve construction disputes that would reduce the need
for litigation as well as protect the rights of property owners....
...compromise and settle the claim by a combination of repairs and monetary
payment,” a statement disputing the claim, or a statement that any monetary
payment will be determined by the recipient’s insurer. §
558.004(5), Fla. Stat.
2. In 2015, the Legislature amended section
558.001 as follows (additions
underlined):
The Legislature finds that it is beneficial to have an alternative
method to resolve construction disputes that would reduce the need
for litigation as well as protect the rights of property owners....
...w
Dictionary 91 (9th ed. 2009).
Chapter 558 falls within this definition as a statutorily required presuit
process aimed to encourage the claimant and insured to settle claims for
construction defects without resorting to litigation. See §§
558.001,
558.004.
Indeed, the Legislature explicitly described chapter 558 as “[a]n effective
alternative dispute resolution mechanism,” intended to be beneficial for reducing
construction defect litigation. §
558.001 (emphasis added); see also Specialty
Eng’g Consultants, Inc....
...LaMarche v. Shelby Mut. Ins. Co.,
390 So. 2d 325, 326-27 (Fla. 1980) (quoting
Weedo, 405 A.2d at 791-92).
- 14 -
Chapter 558, Florida Statutes, concerns actions arising as a result of
construction defects. §
558.001, Fla....
...h by the
Legislature. Every aspect of the chapter 558 process envisions active participation
by the contractor and, therefore, its insurer if the terms of the applicable policy
provide coverage. See §
558.004(13), Fla. Stat. (2012). For example, section
558.001, Florida Statutes (2012), states the Legislature’s finding “that it is
beneficial to have an alternative method to resolve construction disputes that would
reduce the need for litigation as well as protect the rights of property owners,” and
this method “should provide the contractor, subcontractor, supplier, or design
professional with an opportunity to resolve the claim without resort to further legal
process.” Id. §
558.001.
Chapter 558 unquestionably creates a mandatory presuit procedure for
construction defect claims by requiring the claimant to serve the insured with a
notice of claim before filing a construction defect lawsuit....
...would undoubtedly constitute a “suit” that invokes the insurer’s duty to defend.
Br. of Amici Curiae Builders at 8. Creating such disincentives undermines the
Legislature’s intent in enacting chapter 558 to “reduce the need for litigation.”
§ 558.001, Fla....
