GENERAL GUARANTY INSURANCE COMPANY, APPELLANT,
v.
SUNRISE NURSING HOMES, INC. AND UNIVERSAL MECHANICAL CONTRACTORS, INC., APPELLEES
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General Guaranty Insurance Company appealed a summary judgment entered against it as a lien bond surety in a construction lien dispute. The court reversed the summary judgment, holding that the underlying lien claim was invalid because the lawsuit was commenced more than one year after the lien was filed, exceeding the statutory time limit for enforcing transferred liens.
The summary judgment was improper because Universal's complaint affirmatively demonstrated that its lien claim was not viable, having been filed more than one year before the lawsuit was commenced in violation of Florida Statute § 713.24(4). The court reversed the summary judgment and remanded for further proceedings.
[1] A claim of lien that is not enforced within one year of its filing expires.
[2] An action to enforce a mechanic's lien transferred to a bond must be commenced within the time period specified for action on the lien itself.
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Since no claim of lien continues viable for more than a year after filing, the complaint affirmatively shows that Universal was not entitled to a summary judgment.”
Establishes the core holding that the complaint itself demonstrated the invalidity of the lien claim due to the statutory one-year limitation period.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceUniversal Mechanical Contractors performed work and supplied materials to improve property owned by Sunrise Nursing Homes under a written contract. Un…
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PER CURIAM.
General Guaranty Insurance Company (General Guaranty), appellant/defendant, brings this appeal from a final summary judgment entered against it and Sunrise Nursing Homes, Inc. (Sunrise), appel-lee/ co-defendant.
On January 11, 1971, Universal Mechanical Contractors (Universal) sued Sunrise and General Guaranty. The complaint alleged that Universal, pursuant to a written contract, had provided labor and material improving real property belonging to Sunrise and that a sum of $8,692.09 for work done and material furnished remained unpaid. According to the allegations contained in the complaint a claim of lien was filed on July 10, 1969. A lien bond was executed on August 28, 1969, with General Guaranty acting as a surety. From this point the cause proceeded very slowly. Subsequently, on December 10, 1973, Universal movéd for a summary judgment against General Guaranty. Universal also filed a motion for a default judgment against Sunrise after Sunrise failed to respond to the amended complaint. A hearing was held on all pending motions, but counsel for General Guaranty failed to appear. On January 16, 1974, a default judgment against Sunrise and a final summary judgment against General Guaranty were granted. A motion for rehearing was filed and, after hearing, denied. This timely appeal followed.
Upon review of the record and the briefs, we reverse on the ground that the trial court erred in granting the final summary judgment.
Universal’s complaint shows on its face that its claim of' lien was filed more than one year prior to the filing of its complaint. Since no claim of lien continues viable for more than a year after filing, the complaint affirmatively shows that Universal was not entitled to a summary judgment. In fact its action was commenced some 18 months after its claim of lien was filed. When a lien is transferred to a bond an action to enforce the transferred lien must commence within the time specified for action on the lien itself. See Fla.Stat. § 713.24(4), which provides in pertinent part:
If no proceeding to enforce a transferred lien shall be commenced within the time specified in § 713.22 the clerk shall return said security upon request of the person depositing or filing the same, or the insurer. This opinion is not to be construed as passing on the merits. It does not preclude Universal from later raising matters that may show it is entitled to a judgment despite the fact that this action was not filed within the time period prescribed in § 713.24(4), Fla.Stat. Reversed and remanded for further proceedings in accordance with this opinion.
HOBSON, Acting C. J., and BOARD-MAN and SCHEB, JJ., concur.
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Diversified Mortg. Invs. v. Benjamin, 345 So. 2d 392 (Fla. 3d DCA 1977)…mmence after the statute had run. The one year statute has no exceptions. Even where the lien is transferred to a bond, the action must be commenced within the one year period. See: General Guaranty Insurance Company v. Sunrise Nursing Homes, Inc., 326 So. 2d 446 (Fla. 2nd D.C.A. 1976). No action having been taken within one year of recording a lien to perfect it against record fee holder, the lien was discharged per Section 713.22(1), Florida Statutes (1971). Therefore, the trial judge was in error in find…