Construction Law Section Holds Annual Case Update CLE
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Construction Law Section
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Statutes, a notice of nonpayment is fraudulent if the claimant:( 1) willfully exaggerates the amount unpaid;( 2) willfully includes claims for work not performed or materials not furnished; or( 3) prepares the notice with such willful and gross negligence as to amount to a willful exaggeration. 13 However, a“ minor mistake” or“ good-faith dispute” does not defeat an otherwise valid claim. 14
In ultimately finding the claim was willfully exaggerated, the court emphasized that K & M conducted no investigation into what materials were actually incorporated into the project. 15 Instead, K & M sought payment for every dollar billed on the project. 16 As a result, although K & M claimed approximately $ 123,000, only about $ 56,000 worth of materials were actually incorporated into the project and recoverable under the bond. 17 Based on these facts, the court held that K & M prepared the notice with“ such willful and gross negligence as to amount to a willful exaggeration” under the statute. 18 n
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K & M Elec. Supply, Inc. v. Brown Electrical Solutions, LLC, 2026 WL 885683( Fla. 4th DCA 2026).
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Id. at * 1
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K & M Elec. Supply, Inc., 2026 WL 885683 at * 1.
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K & M Elec. Supply, Inc., 2026 WL 885683 at * 1( citing Aquatic Plant Mgmt., Inc. v. Paramount Eng’ g, Inc., 977 So. 2d 600, 603( Fla. 4th DCA 2007)).
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Id. at * 3; see § 255.05( 2)( a) 2, Fla. Stat.( 2022).
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K & M Elec. Supply, Inc., 2026 WL 885683 at * 3.
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Id. See Hardeman Landscape Nursery, Inc. v. Watkins, 290 So. 3d 574, 576( Fla. 2nd DCA 2020).
Authors: John P. Amon – Paskert Divers Thompson & Brian T. Allen – Carlton Fields, P. A.
Construction Law Section Holds Annual Case Update CLE
onmay21, theConstructionlawsectionhostedBrianstaytonwith Thestaytonlawgroup, P. a., whoprovidedanannualupdateonimportant casesaffectingconstructionlaw. wethankmr. staytonwhoprovidedhis timeandexpertise, inpresentingthisimportantupdatetothesection.
Thank you also to our luncheon sponsor:
J U LY- A U G 2 0 2 6 | H C B A L A W Y E R
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