What Do I Do With This Notice of Claim?: Navigating Through Chapter 558, Florida Statutes

In Florida, the current legal regime for construction defect claims is codified at Chapter 558, Florida Statues. This statute provides an alternative dispute resolution for construction disputes "that would reduce the need for litigation as well as protect the rights of property owners." Fla. Stat. § 558.001. The process begins with a claimant, who is defined as a being "a property owner, including a subsequent purchaser or association, who asserts a claim for damages against a contractor, subcontractor, supplier or design professional or a subsequent owner who asserts a claim for indemnification for such damages.” Fla. Stat. § 558.002. However, the term does not include a contractor, subcontractor, supplier or design professional.

A claimant must serve a construction/design professional with a notice of claim. See Fla. Stat. § 558.004(1)(a). Said notice must include the following information:

1. A description in reasonable detail of the nature of each alleged construction defect;
2. If known, the damage or loss resulting from the defect.
3. Based upon at least a visual inspection, an identification of the location of each alleged construction defect sufficiently to enable the responding parties to locate the alleged defect without undue burden.

See Fla. Stat. § 558.004(1)(b).

The claimant must serve their notice at least 60 days before filing their construction defect lawsuit. If the suit involves an association representing more than 20 parcels, then the notice must be served at least 120 days prior to filing a construction defect lawsuit. See Fla. Stat. § 558.004(1)(a).

Once in receipt of the notice of claim, a construction and/or design professional has 30 days to inspect the subject property and alleged construction defects. However, if involving an association representing more than 20 parcels, the construction/design professional has 50 days to inspect. See Fla. Stat. § 558.004(2).

A big question typically looms after a construction/design professional receives a notice of claim; what are my options? Under Chapter 558, Florida Statutes, a construction/design professional must do one of the following within 45 days of the notice of claim, or 75 days if involving an association representing more than 20 parcels:

1.    A written offer to remedy the alleged defects at no cost to the claimant;

2.    A written offer to compromise and settle the claim for monetary payment;

3.    A written offer to compromise and settle the claim by a combination of repairs and monetary payment;

4.    A written statement disputing the claim and not offering a compromise or settlement; or

5.    A written statement that a monetary payment will be determined by the construction and/or design professional’s insurer within 30 days after notifying there insurer.

See Fla. Stat. § 558.004(5).

A construction/design professional can accept or dispute all or part of the claims asserted by the claimant. If the construction/design professional does not respond at all, the claimant can proceed with its action for construction defects without further notice. See Fla. Stat. § 558.004(6).

Compliance with the above requirements is crucial. If the pre-suit requirements of Chapter 558 are not followed, a construction/design professional may move a court to stay a construction defect action until the pre-suit requirements are complied with. See Fla. Stat. § 558.003.

Navigating through a Florida construction defect matter and pre-suit requirements of Chapter 558 can be an arduous task. If you are in receipt of a notice of claim, please consult with a legal professional.

Matt Margolis, Esq. is an attorney at Shapiro Blasi Wasserman & Hermann. Mr. Margolis' practice focuses on construction litigation, complex commercial litigation, and real estate. Mr. Margolis has experience litigating on behalf of contractors, subcontractors, architects, engineers and other construction/design professionals in a variety of matters.

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