Disputing Florida Construction Liens: Is it Fraud or Just a Big Argument?

1. Florida law allows construction liens for money owed for labor, services, materials, or other items required by the direct contract.
2. Florida’s construction lien statutes do not allow increasing the lien amount based on breach of contract by the property owner.
3. Florida Statute Section 713.31(2)(a) states that a lien is fraudulent if the lienor willfully exaggerates the amount claimed, includes a claim for work not performed or materials not furnished, or displays willful and gross negligence in compiling the claim. – A “willful act” is defined as one that is done intentionally, knowingly and purposefully, without justifiable excuses.
– Certain types of conduct, such as including work not performed, lost profits, unauthorized work, delay damages, and unpaid workers’ compensation insurance in a lien, can be considered willful.
– Small amounts of non-lienable items in a lien or simple errors or good faith disputes do not necessarily make the lien fraudulent.
– The use/advice of counsel in preparing the lien, as long as there is full disclosure to counsel, may establish the good faith necessary to refute a fraudulent lien claim.
– The fact that amounts claimed in the lien are less than what the court ultimately awards does not render the lien fraudulent.
– The burden to establish a claim that a lien is fraudulent falls on the party making the claim. 1. The lienor should only include items that add value to the property when filing a lien.
2. Any other claims for breach of contract should be reserved for a separate action.
3. When unsure about what items to include in the lien, it is prudent for the lienor to consult an attorney for guidance.

https://www.jimersonfirm.com/blog/2013/10/florida-construction-liens-fraud-or-just-a-good-faith-dispute/