Legal Question in Real Estate Law in Florida

Florida Statute 558

We purchased a home in 2005 that was built in 2000. Recent events revealed improper tile installation throughout the home and floor failure. Our Insurance company commissioned an Engineering Report that CLEARLY states the original tile installation was not performed adequately. The builder's Insurance Company agrees, but will not cover repair.

Amazingly, even with the report and correspondence from their INS co. the builder continues to blame the issue on common settling. Clearly not the issue. In addition, we are one of several homes in the subdivision with the same issue, but one of only two that have agressively pursued the builder for repair.

We have given the builder notice that we plan to look for remedy under Florida Statute 558 for ''latent defects''. My question is, as we were not the original owners and had no contract with the builder, are we bound to seek remedy via arbitration. The builder for months claimed ''no warranty exists'' until he realized we were not going to say ''OK'', and go away.

How can we be bound to arbitration via the 2/10 HOW that was a contract between the original owner and the builder, especially since the warranty had expired to cover the defect before we purchased the home?


Asked on 2/23/09, 2:58 pm

1 Answer from Attorneys
Brent Rose The Orsini & Rose Law Firm

Re: Florida Statute 558

You've asked this question before and had it answered. Now I have a question for you: why not do the arbitration? Why are you so against it? Wouldn't you rather spend a couple thousand paying a lawyer to do an arbitration than $15-20,000 for a lawyer to litigate in circuit court?

I've always found the arbitrators to be fair, and I've found they've always listened carefully to my clients' positions. Every arbitrator looks carefully at the damage (in fact, we do the arbitrations in the home). They listen intently to my expert witnesses. I've never gotten the sense that the arbitrator is siding against my client in favor of the builder. I've always felt that the arbitrators are very fair. If your case is strong, it will be just as strong in front of an arbitrator as a judge.

Why don't you speak with a construction lawyer and determine if the arbitration isn't your best option?

I understand that you want the builder to simply comply with your 558 request, but, obviously, they aren't going to. And, if you read Chapter 558, it says they don't have to. Chapter 558 doesn't force anyone to do anything, it just tries to get people to cooperate. They aren't cooperating. That means you have to sue them, or, more likely, sue the warranty company that you inherited from the original owner. Or maybe both. Either way, arbitration may be your cheapest and best bet for now.

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Answered on 2/23/09, 5:00 pm


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