Gator Boring & Trenching, Inc. v. Westra Construction Corp.
210 So. 3d 175
| Fla. Dist. Ct. App. | 2016Background
- Westra contracted with TECO for pipeline work and subcontracted horizontal directional drilling under the Alafia River to Gator.
- Gator encountered unexpected rock, incurred substantial extra costs, and completed the work but was not fully paid; Gator filed a Polk County construction lien for $889,792.70 (including $676,556.90 for changed conditions).
- Westra transferred the lien to a Travelers-issued bond; Gator sued Westra for breach of contract (count I) and sought recovery on the lien-transfer bond (count II) against Westra and Travelers.
- Westra and Travelers moved for partial summary judgment seeking dismissal of the changed-conditions claim and asserting the lien was fraudulent under §713.31(2) because it included the changed-conditions amount.
- The trial court granted partial summary judgment, declared the lien exaggerated/fraudulent, ordered release of the bond, and dismissed count II; Gator appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction as to Travelers | Appeal of dismissal of count II is reviewable as a partial final judgment because Travelers claims were fully resolved | Trial court order disposing all claims against Travelers is final | Court has appellate jurisdiction over dismissal of count II as a partial final judgment under Fla. R. App. P. 9.110(k) |
| Jurisdiction as to Westra | Gator sought review of summary judgment on changed-conditions claim | Westra argued the partial summary judgment is appealable | Court held appeal as to Westra is nonfinal/nonappealable because interrelated claims remain; appeal dismissed in part |
| Whether a lien becomes fraudulent as a matter of law because the lienor loses a related contract claim | Gator: inclusion of disputed changed-conditions amount was based on a contested, good-faith claim supported by counsel and discovery; loss on summary judgment does not prove willful exaggeration | Westra/Travelers: summary judgment rejecting the changed-conditions claim means the lien includes unrecoverable amounts and is therefore fraudulent/unenforceable under §713.31(2) | |
| Whether summary judgment was proper to dismiss count II and release bond | Gator: Travelers failed to show absence of any genuine issue of fact that Gator willfully exaggerated the lien; issue of fraud is factual and must survive to trial | Travelers: trial-court ruling on the related contract claim established the lien was exaggerated and thus fraudulent as a matter of law | Court reversed/quenched in part: Travelers did not meet summary-judgment burden; willfulness of exaggeration is a factual question and lien cannot be declared fraudulent solely because Gator lost the changed-conditions claim; bond release and dismissal of count II were erroneous |
Key Cases Cited
- Behavioral Healthcare Options, Inc. v. Charter Behavioral Health Sys. of Tampa Bay, Inc., 727 So. 2d 1135 (Fla. 2d DCA) (partial final judgment rule explanation)
- East Ave., LLC v. Insignia Bank, 136 So. 3d 659 (Fla. 2d DCA) (certiorari review of nonfinal orders where immediate review necessary to prevent irreparable harm)
- Connolly v. Sebeco, Inc., 89 So. 2d 482 (Fla.) (distinguishing motions to dismiss and motions for summary judgment)
- Sam Rodgers Props., Inc. v. Chmura, 61 So. 3d 432 (Fla. 2d DCA) (party alleging fraudulent lien bears burden to prove willful exaggeration)
- Sharrard v. Ligon, 892 So. 2d 1092 (Fla. 2d DCA) (consultation with counsel tends to show good faith in filing lien)
- Delta Painting, Inc. v. Baumann, 710 So. 2d 663 (Fla. 3d DCA) (finding fraudulent lien requires competent substantial evidence of intent)
- Politano v. GPA Constr. Grp., 9 So. 3d 15 (Fla. 3d DCA) (reducing a lien does not make it fraudulent as a matter of law)
- Vinci Dev. Co. v. Connell, 509 So. 2d 1128 (Fla. 2d DCA) (good-faith contract disputes do not convert claims into fraudulent liens)
- J.W. Rolle Dev. Corp. v. Neuman, 910 So. 2d 349 (Fla. 4th DCA) (fraudulent-lien allegations are factual questions inappropriate for summary judgment)