General

Lack of funding for Florida building prompts lawsuit

The construction of new buildings and renovation of already existing structures plays an important role in economies of states throughout the nation, including Florida. While all construction projects, regardless of size, have the potential to be complex, this is particularly true where large commercial projects are concerned. The more complex the project, the more issues that could trigger disagreements resulting in litigation.

Construction has been halted at a construction site located in South Florida as a result of a disagreement between the project’s developer and its partners. The lawsuit is the result of a lack of funding for the mixed-use project. After the funding for the project failed to come through, the developer of the property filed a lawsuit against the owner of the property. In the lawsuit the developer seeks to foreclose on a construction lien. The construction lien is worth $1.2 million.

It is possible that this matter will be settled outside of court. Should this not happen however, a trial will likely determine the outcome. In the meantime, the project will probably remain at a standstill.

There are many matters that must be taken into consideration where the construction of commercial real estate is concerned. In addition to funding issues, other matters that may arise include:

• Bond claims
• Disputes regarding performance
• Breach of contract
• Construction defect claims

Because these matters cover such a wide range of issues, most parties involved in such construction work closely with a lawyer who understands the world of real estate and commercial construction.

Source: South Florida Business Journal, “Lawsuit stalls Cymbal’s Design District project in Miami,” Brian Bandell, Jan. 3, 2013

Fri Aug 24, 7:16pm