TUTTLE/WHITE CONSTRUCTIONS, INC. v. Hughes Supply, Inc.

371 So. 2d 559
CourtDistrict Court of Appeal of Florida
DecidedMay 31, 1979
Docket76-2747
StatusPublished
Cited by10 cases

This text of 371 So. 2d 559 (TUTTLE/WHITE CONSTRUCTIONS, INC. v. Hughes Supply, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TUTTLE/WHITE CONSTRUCTIONS, INC. v. Hughes Supply, Inc., 371 So. 2d 559 (Fla. Ct. App. 1979).

Opinion

371 So.2d 559 (1979)

TUTTLE/WHITE CONSTRUCTORS, INC., and Federal Insurance Company, Appellants,
v.
HUGHES SUPPLY, INC., Suncoast Village, Inc., et al., Appellees.

No. 76-2747.

District Court of Appeal of Florida, Fourth District.

May 31, 1979.

*561 R.L. Russell of Van Den Berg, Gay & Burke, Orlando, for appellants.

James M. Corrigan of Maguire, Voorhis & Wells, Orlando, for appellee Hughes Supply, Inc.

CROSS, Judge.

Tuttle/White Constructors, Inc., and its surety, Federal Insurance Company, appeal final judgment entered in favor of Hughes Supply, Inc., in an action to recover payment for materials supplied to a construction project. We reverse.

Suncoast Village was conceived as a multi-building office, motel, restaurant and parking complex in St. Petersburg, Pinellas County, Florida. Suncoast Village, Inc. (hereinafter Suncoast), as owner, entered into a contract with Tuttle/White Constructors, Inc. (hereinafter Tuttle/White), as prime contractor, for construction of the Suncoast Village complex. Tuttle/White entered into a subcontract with Murphy Electric Company of Florida (hereinafter Murphy), under which Murphy contracted to perform the electrical work on the project for the sum of $298,109. Hughes Supply, Inc. (hereinafter Hughes), orally agreed to furnish necessary electrical materials to Murphy for use in Suncoast Village.

Hughes first began to supply materials to Murphy on June 25, 1974. It was not until January 11, 1975, that Hughes served a Notice to Owner to inform Suncoast that it was acting as materialman for Murphy. By this time Murphy had received progress payments totaling $254,008.80. On January 24, 1975, Hughes requested and obtained from Tuttle/White a letter guaranteeing payment for materials thereafter supplied by Hughes to Murphy. Three days later, on January 27, 1975, as a result of Murphy's insolvency, Tuttle/White sent to Murphy a notice terminating their respective contract on the Suncoast Village project. Hughes received a copy of this notice of termination.

Tuttle/White then engaged Racecon, Inc. to complete the balance of the electrical work formerly covered by Murphy's subcontract. Racecon successfully performed its obligations, and allegedly received $33,299.45 in payment from Tuttle/White. Tuttle/White allegedly expended an additional $4,840.13 for materials to aid in completion of the electrical work performed by Racecon.

On April 29, 1975 Hughes recorded its claim of lien and demanded payment in the amount of $32,060.06 for materials supplied to Murphy for the Suncoast Village project. Tuttle/White refused payment. Suit was then instituted by Hughes in Pinellas County against Tuttle/White, Suncoast and Murphy. On motion by all parties venue was changed to Orange County, Florida. Meanwhile, Tuttle/White arranged to post a lien transfer bond in the amount of $37,930.87 with Federal Insurance Company as surety. Subsequently, Hughes filed its amended complaint joining Federal Insurance Company as a party defendant, and sought to foreclose its lien against the transfer bond. Thereafter, final judgment was entered in favor of Hughes against all defendants with Hughes being awarded the sum of $41,730.08. Tuttle/White and Federal petitioned for rehearing, which was denied. This appeal then followed.

Section 713.06(1), Florida Statutes (1977), provides that persons not in privity with the owner may establish a lien on the owner's real property to the extent necessary to guarantee payment for labor, services or materials furnished in accordance with contract. Subsection (2) of Section 713.06 requires that the prospective lienor serve a notice on the owner setting forth certain specified information either (1) before commencing to furnish services or materials; (2) not later than 45 days from commencing to furnish services or materials; or (3) any time before the furnishing of the contractor's affidavit under Section 713.06(3)(d)(1), Florida Statutes, or abandonment, whichever shall first occur. As construed, this statute requires the filing of notice to owner not later than 45 days after commencing to furnish services or materials. Bard Manufacturing Co. v. Albert & Jamerson Bldg. Supply Corp., 212 So.2d 13 (Fla. 4th DCA 1968).

*562 However, the failure of a prospective lienor to file notice to owner within forty-five days does not act as an absolute bar to recovery. Konsler Steel Co. v. Partin, 356 So.2d 264 (Fla. 1978); Moretrench Corp. v. Bronson & Veal Enterprises, Inc., 262 So.2d 206 (Fla. 4th DCA 1972). The case of Crane Co. v. Fine, 221 So.2d 145 (Fla. 1969), recognized the right of a supplier of services or materials to proceed to establish an equitable lien. Under the holding in Crane, lienors who file notice after the forty-five day limit still may participate either in full or pro rata to the extent funds remain available after payment has been made to "priority" lienors. Moretrench Corp. v. Bronson & Veal Enterprises, Inc., supra. Priority lienors are those lienors who either have given proper notice or whose time for serving such notice has not yet expired. Section 713.06(3)(c)(4), Florida Statutes. In order to participate, the lienor must show an uncompleted contract at the time that the owner received notice by service of a late notice of intention or service of the claim of lien. Torres v. MacIntyre, 334 So.2d 59 (Fla. 3d DCA 1976). A contract remains "uncompleted" when funds remain due under a contract to which the lienor would be entitled.

Appellee-Hughes claims it is entitled to participate in any progress payments made by appellant after Hughes filed its tardy notice.

Proper payment of progress payments is governed by Section 713.06(3)(c)(1), Florida Statutes, which provides:

The owner shall pay or cause to be paid ... the sum then due to each lienor giving notice prior to the time of said payment.

However, the appellee does not fall within the above quoted provision. Even though appellee's notice was given prior to the making of certain progress payments under the primary direct contract, it is not entitled to participate since the term "lienor giving notice" is specifically defined as those lienors who have duly served a notice to owner. Section 713.01(19), Florida Statutes. Since appellee's notice was not served within the statutory period, such notice cannot be said to be duly served. Any right of appellee to participate in progress payments must be governed by the provisions of Section 713.06(3)(c)(4), Florida Statutes, which provides:

4. No person furnishing labor or material or both who is required to serve a notice under subsection (2)(a), and who did not serve such notice and whose time for such service has expired shall be paid because he is listed in an affidavit furnished by the contractor under this subsection until all lienors giving notice and lienors listed in such affidavit whose time for serving such notice has not expired have been paid in full. If there is a balance due the contractor after all of said lienors have been paid in full, any of said persons who failed to serve timely notice shall be paid in full or pro rata according to the amounts of their claims to the extent of such balance due the contractor; provided, this shall not be construed to permit any claim or demand whatsoever by said persons failing to serve timely notice against the owner. (Emphasis added.)

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Bluebook (online)
371 So. 2d 559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tuttlewhite-constructions-inc-v-hughes-supply-inc-fladistctapp-1979.