In the world of construction, unpaid invoices can pose significant challenges for contractors. When all attempts to collect payment have failed, legal action may be unavoidable. In Florida, this often entails recording a construction lien and filing a lawsuit. This article discusses the general process and expenses, from recording the lien to obtaining a final judgment in court.
Recording the Construction Lien:
A crucial initial step for contractors seeking to secure unpaid debts is to record a construction lien, also known as a mechanics lien. This legal claim is placed on the property, alerting interested parties to the unpaid debt. However, before recording the lien, contractors must ensure they meet specific requirements under Florida law. These may include issuing a Notice to Owner (NTO), adhering to filing deadlines, and following other procedural requirements.
Once the prerequisites are met, the contractor can proceed with filing a Claim of Lien in the county where the property is located. This document serves as a public notice, encumbering the property and notifying potential buyers, lenders, and others with a vested interest about the outstanding debt.
Filing a Lawsuit: The Litigation Process:
Recording a construction lien is an effective strategy to protect a contractor’s rights, but it does not guarantee immediate payment. To enforce the lien and recover the owed amount, the contractor usually must file a lawsuit in court.
The litigation process typically comprises several stages, including claim filing, discovery, motion practice, and trial:
- Claim Filing: The contractor drafts a complaint that outlines the details of the dispute, the amount owed, and the legal basis for the claim. Once the complaint is filed with the court, it is served to the defendant, formally initiating the litigation process.
- Discovery: This phase allows both parties to gather and exchange information and evidence relevant to the case. Discovery methods may include document requests, depositions, interrogatories, and requests for admissions. Contractors may engage experts, such as engineers or appraisers, to provide professional opinions on matters crucial to the dispute.
- Motion Practice: Throughout the litigation process, various motions may be filed by both parties to resolve procedural or substantive issues. Common motions include motions to dismiss, motions for summary judgment, and motions to compel discovery. These motions are heard and decided by the court, and they play a vital role in shaping the direction and outcome of the case.
- Trial: If the dispute remains unresolved after the pre-trial stages, the case proceeds to trial. During the trial, both parties present their arguments, evidence, and witness testimonies before a judge or jury. The judge or jury evaluates the evidence and renders a final judgment.
Expenses Involved:
Pursuing legal action through construction liens and lawsuits in Florida creates a variety of expenses. The costs can vary depending on the complexity of the case and the attorney you select. Here are some common expenses contractors may encounter:
- Legal Fees: Hiring an experienced construction attorney is essential to navigate the complex legal procedures involved. Attorneys typically charge an hourly rate or a flat fee. Legal fees may range between $200 and $600 per hour, and the number of hours depends on how long it takes to resolve the case.
- Court Fees: Filing a lawsuit requires payment of court filing fees, which vary depending on the county and the amount in dispute. Usually, court filing fees range between $300 and $500 per lawsuit.
- Expert Witness Fees: In complex construction cases, expert witnesses may be necessary to provide professional opinions on matters such as the quality of work or project cost estimates. Experts usually charge between $200 and $400 per hour, and perform between 20 and 100 hours of work.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
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