Zaleznik v. Gulf Coast Roofing Co., Inc.

576 So. 2d 776, 1991 WL 24854
CourtDistrict Court of Appeal of Florida
DecidedFebruary 27, 1991
Docket90-00153, 90-00589
StatusPublished
Cited by10 cases

This text of 576 So. 2d 776 (Zaleznik v. Gulf Coast Roofing Co., 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
Zaleznik v. Gulf Coast Roofing Co., Inc., 576 So. 2d 776, 1991 WL 24854 (Fla. Ct. App. 1991).

Opinion

576 So.2d 776 (1991)

Elliot ZALEZNIK, and Joyce Zaleznik, His Wife, Appellants,
v.
GULF COAST ROOFING CO., INC., AA Stucco & Drywall, Inc., and Fenton Davis Painting, Inc., Appellees.

Nos. 90-00153, 90-00589.

District Court of Appeal of Florida, Second District.

February 27, 1991.
Rehearing Denied April 14, 1991.

*777 Karl Johnson and William G. Belcher, II, of Nuckolls & Johnson, P.A., Fort Myers, for appellants.

Thomas Franchino of Siesky & Lehman, P.A., Naples, for appellee Gulf Coast Roofing Co., Inc.

Daniel A. Gregory of Asbell, Hains, Doyle & Pickworth, P.A., Naples, for appellee AA Stucco & Drywall, Inc.

Mark A. Slack of Paulich, O'Hara, Slack & Menzes, P.A., Naples, for appellee Fenton Davis Painting, Inc.

ALTENBERND, Judge.

Elliot and Joyce Zaleznik appeal a final judgment which awards damages against them and imposes both equitable and mechanics' liens on their home in favor of three subcontractors: Gulf Coast Roofing Co., Inc., AA Stucco & Drywall, Inc., and Fenton Davis Painting, Inc. We affirm the award of damages on the theory of unjust enrichment. We reverse the equitable liens. We reverse Gulf Coast Roofing's mechanics' lien because it did not timely perfect its lien. Finally, we affirm AA Stucco's and Fenton Davis Painting's mechanics' liens, but limit the amount of those liens to the difference between the unpaid amount of the contract price at the time of abandonment and the amount paid by the Zalezniks to complete the home pursuant to the contract.

I. THE FACTS

On November 28, 1986, the Zalezniks entered into a contract with Monarch Construction Company for the construction of a house in Naples, Florida. After an early amendment to the contract, the contract price was $519,000. In March 1987, the Zalezniks and Monarch executed a change order for $30,620. As a result of this change order, the "contract price" of the home became $549,620 for purposes of the mechanics' lien law. § 713.01(3), Fla. Stat. (1985).

To finance the construction of the home, the Zalezniks obtained a commitment for a $519,000 construction loan from Sun Bank/Naples, N.A. Both the contract with Monarch and the loan agreement with Sun Bank provided for progress payments upon the completion of various phases of the home. The contract and the loan agreement, however, varied in the number of the progress payments, the amount of the payments, and the description of the work within each job phase.

The construction of the home progressed without any apparent complications for the first few months. As of April 9, 1987, the Zalezniks had paid Monarch a total of $299,910 for the construction of their home. This sum represented the first three progress payments and one-half of the cost of the change order.

In early April 1987, the president of Monarch informed the Zalezniks that his company was experiencing a shortfall in construction funds but assured them that the problem would be solved. During mid-April 1987 to May 1987, Monarch entered into subcontracts with these three subcontractors. Between April 22 and June 10, 1987, Gulf Coast Roofing performed approximately 80% of the roof work on the Zalezniks' home. There is no dispute that this work was worth $19,500, but Monarch never paid Gulf Coast for the work. Between May 6 and June 18, 1987, AA Stucco & Drywall completely performed its stucco subcontract, but Monarch did not pay the $38,295 owing for this work. There is no dispute that the stucco work was adequately performed and worth the contract price. Finally, between May 11 and July 7, 1987, Fenton Davis Painting performed most of the work required by its subcontract. Monarch made no payment to Fenton Davis, despite the fact that its work was satisfactory and worth $14,229.

The Zalezniks visited the jobsite and observed these subcontractors performing their work. Although the Zalezniks were aware of Monarch's financial problems and had decided to temporarily stop any additional progress payments, they did not inform the subcontractors of these problems. *778 Instead, the Zalezniks allowed the subcontractors to continue working on their home. The Zalezniks do not dispute that the subcontractors' work substantially increased the value of their home and that they did not pay anyone for the work.

In mid-July 1987, after these subcontractors had performed their work in whole or in part, the Zalezniks concluded that Monarch would not fulfill its contract. As a result, they obtained several bids from other contractors to finish the home. Lundstrom-McDonald Development, Inc., was the lowest bidder.

During late July 1987, Monarch ceased work on the job. The evidence establishes that certain work, which was a condition of the fourth progress payment under either the construction contract or the loan agreement, was never completed while Monarch was performing its contract. We note that, while additional voluntary payments may have allowed construction to continue under the leadership of Monarch, there was no determination by the trial court that the Zalezniks were legally obligated to make any additional payments to Monarch.

On August 7, 1987, the Zalezniks' attorney requested Monarch to legally abandon the job so that Lundstrom could finish the home. In mid-August, Monarch provided the Zalezniks with a written notice of abandonment. The Zalezniks then formally entered into a contract with Lundstrom. On August 14, 1987, the day the Zalezniks received Monarch's notice of abandonment, they recorded an owner's affidavit of intention to recommence construction and a notice of recommencement pursuant to section 713.07(4), Florida Statutes (1985). Thereafter, the three subcontractors timely recorded a claim of lien.

When the Zalezniks entered into the contract with Lundstrom, $249,710 of the Monarch contract price remained unspent. The Lundstrom contract specified $271,000 to finish the home. Lundstrom finished construction of the home. At trial, however, the Zalezniks were able to produce cancelled checks to Lundstrom that totalled only $232,896. As a result, the trial court found that $16,814 of the Monarch contract price remained unpaid.[1]

The Zalezniks refused to pay these subcontractors, maintaining that they had no obligation to pay them under section 713.06, Florida Statutes (1985). This litigation ensued. The subcontractors sought damages under theories of unjust enrichment and quantum meruit. They also sought equitable and mechanics' liens.

The trial court carefully prepared a final judgment containing extensive findings of fact and conclusions of law that has greatly assisted this court. The trial court awarded each of the subcontractors damages based upon their alleged theories. The trial court also imposed equitable and mechanics' liens on the Zalezniks' home. Because the court found that the Zalezniks had unreasonably delayed the recommencement of the job, it imposed the mechanics' liens for the full amount of the subcontractors' claims, plus interest, costs, and attorneys' fees.

II. UNJUST ENRICHMENT

We affirm the damages award under the theory of unjust enrichment. The Zalezniks received over $70,000 in construction work performed during the fourth phase, for which they paid no one. There is no question that the work performed by the subcontractors added substantial value to the home. Since the subcontractors' work was finished before Lundstrom began its work, it was not a portion of the Lundstrom contract. If this work had not been *779

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Cite This Page — Counsel Stack

Bluebook (online)
576 So. 2d 776, 1991 WL 24854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zaleznik-v-gulf-coast-roofing-co-inc-fladistctapp-1991.