Statute of Limitations/Statute of Repose for Construction Defects
Two parallel bills have been advancing through the Florida House of Representatives and the Florida Senate. House Bill 85 and Senate Bill 360 (the “Bill”) are nearing approval and will change the landscape, alleviate some of the uncertainties surrounding the statute of limitations for claims arising out of construction projects, will reduce claims and litigation, and potentially reduce risks and costs to builders, sureties, and insurers.
In summary, the Bill seeks to (1) revise the date on which the statute of limitations begins to run; (2) modifies the statute of repose; (3) clarifies the time frame for bringing an action for a singledwelling residential unit and clarifies the application of the limitations period for projects of multiple buildings; and (4) modifies the standard for a statutory cause of action for building code violations.
Currently, actions founded on improvement to real property sets forth a four year statute of limitations for filing suit which runs from the date one of the following trigger events: (1) actual possession by the owner, (2) issuance of a certificate of occupancy, (3) abandonment of the construction if not completed, or (4) date of completion of the contract/termination of the contract between professional engineer, registered architect or licensed contractor, whichever date is latest.
Significantly, the Bill modifies the trigger events as follows: (1) the date the authority having jurisdiction issues a temporary certificate of occupancy, a certificate of occupancy, or a certificate of completion or (2) the date of abandonment of construction if not completed, whichever date is earliest.
The Bill separately reduces the statute of repose from 10 years to 7 years and matches the triggers for determining the statute of repose to the same triggers for the statute of limitations referenced above.
