Huge Win for Contractors Dealing With Statute of Repose

SB 360 Passage Creates Huge Win after Decade Long Push!

The 2023 session will be one for the records books. Governor DeSantis signed into law SB 360 after passing the House (89-8) and the Senate (31-7) with bipartisan support resulting in a major win for the construction industry in Florida. The house and senate bills were sponsored by Representative John Snyder and Senator Travis Hutson, both of whom ABC of Florida has been long time supporters of.

For too long, the industry has been held hostage by the endless abuse of the Chapter 558 Construction Defects process. This legislation will add much needed predictability, certainty, and clarity to a currently confused process.

— Carol Bowen, ABC Central Florida Chief Lobbyist

SB 360 leaves intact the four-year statute of limitations for defect claims to project owners, however it shortens the statute of repose from 10 years to seven for latent defects, or those that are “hidden” and not discovered until after expiration of the statute of limitations. In addition to the revised seven-year time limit, the new law also changes the triggers for the start of the clock to the earliest of two events; (1) issuance of a temporary certificate of occupancy, certificate of occupancy, or certificate of completion; or (2) the date of abandonment of construction if the project is not completed. Previously, the limitation and repose periods did not begin until the latest event allowing for the periods to possibly extend well beyond completion of the project, creating undue exposure for contractors.

Under the previous version there were often factual disputes as to when an owner took possession of the property, or when a contract was completed. This conflict is removed under the new version due to certificates of occupancy/completion being public record and additionally clarifies that if a TCO, CO, or certificate of completion is issued, warranty or service work performed within the scope of the building permit will not delay the statute of limitations or repose from being triggered, reducing excessive subjection.

The bill also adds a “materiality” requirement to support a Chapter 553 defects claims alleging a violation of Florida’s Building Code, via the Chapter 558 process. The revision aims to eliminate claims for technical violations of the Florida Building Code where there is no resulting damage to the property or personal injury. The owner must now show that the violation has resulted in physical harm to a person or significant damage to the performance of a building or its systems.

The Statute of Repose provides attorneys a way to go after insurance companies through the general contractors and the subcontractors involved. It was put in place to help the owners of the properties, but instead of being used solely for the pursuit of contractors that are doing poor work, attorneys are using this statute to issue lawsuits against many if not all contractors regardless of the workmanship on the building. Reducing the amount of time will provide some relief from this process and help discourage frivolous lawsuits. We were very excited to see this bill passed!

— Jason Albu, Albu & Associates, Inc., | ABC Central Florida Board Member