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Real Estate Contractors In South Florida Appeal Judge’s Dismissal of Attorney-Fee Suit

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A group of leak and mold detection contractors in Florida has filed an appeal against a judge’s decision to dismiss a lawsuit alleging a new property insurance law is unconstitutional. Read about the case and how to get legal assistance with a real estate dispute below. 

Changes to Attorney-Fee Restrictions For Contractors 

Earlier this year, a lawsuit was filed against both the Secretary of the Florida Department of Business and Professional Regulation and the Florida Construction Industry Licensing Board for changing attorney-fee restrictions in a manner that allegedly violates the rights contractors have to equal protection, access to courts, and due process of law. 

The lawsuit was filed by the Restoration Association of Florida and Air Quality Assessors, LLC in May and heard by Leon County Circuit Judge J. Lee Marsh in August. At this time, Marsh dismissed the case, but not on the basis that the state had a right to make the aforementioned changes. Instead, Marsh ruled that the Licensing Board and the Secretary were not “proper defendants” because they lacked the ability to enforce the laws in question. 

Understanding the Assignment of Benefits 

Before the state updated the restrictions, contractors were allowed to recover any attorneys fees accrued from litigation with insurers to obtain payment for work that was authorized under the assignment of benefits. This means that a homeowner has signed over their insurance benefits to contractors as payment for work completed and the contractors must settle the claim with the insurer themselves. 

In many cases, this results in litigation when insurers attempt to deny legitimate claims. Now, the new changes to attorney-fee regulations prohibits contractors from recovering legal costs associated with bringing legal action against dodgy insurance companies. Homeowners may still sue for attorneys fees, but contractors who have been compensated with the assignment of benefits may not. 

Do You Need Legal Help With a Real Estate Dispute? 

Navigating any kind of litigation can be complex, especially when real estate contracts are involved. Don’t wait to get the legal help you need when involved in any kind of real estate dispute. Feinstein Real Estate Litigation & Business Law has the skills and expertise to provide you with comprehensive legal assistance. Reach out today to book a consultation to discuss your case or to learn more about how changes to Florida law might affect you by calling 954-767-9662.

By : admin | September 11, 2022 | Real Estate Litigation