Florida/Georgia Personal Injury & Workers Compensation

...Soda, 540 So.2d 195 (Fla. 2d DCA 1989); James v. Wolfe, 512 So.2d 954 (Fla. 2d DCA 1987). But see, Munilla v. Espinosa, 533 So.2d 895 (Fla. 3d DCA 1988). [2] The language used in the contract in this cause is certainly in contrast with that required by section 501.1375, Florida Statutes (1989), if it were applicable....

...The Romans alleged each defendant was a “contractor” within the meaning of section 489.126 and sought treble damages for civil theft pursuant to section 772.11, Florida Statutes. Finally, count IV asserted a claim against Atlantic Coast and Joseph Paladin for violation of section 501.1375, Florida Statutes, governing escrow requirements for deposits received by “building contractors.” Each of the real estate contracts contained an arbitration clause, and relying upon those provisions, the defendants filed a motion to abate the civil suit and to compel the arbitration of the Romans’ claims....

..."`Developer' means either a building contractor who offers new residential dwelling units for sale or any person who offers a new one-family or two-family residential dwelling unit for sale, except for a person who sells or constructs less than 10 units per year statewide." Fla. Stat. § 501.1375(1)(b); (Defendants' Motion for Summary Judgment, DE 188, p....

by both parties is controlled by statute. Section 501.-1375(7), Florida Statutes (1989), provides in relevant

...In this appeal and cross-appeal involving the construction of a home upon land owned by the buyer, the trial court certified a question to our court as one of great public importance. We restate the certified question as follows: WHETHER THE ESCROW DEPOSIT REQUIREMENT OF SECTION 501.1375, FLORIDA STATUTES, APPLIES TO GENERAL CONTRACTORS WHO CONTRACT TO BUILD A SINGLE-FAMILY RESIDENCE UPON LAND OWNED BY THE CONSUMER AT THE TIME THE CONTRACT IS SIGNED....

...The McLellans sued JPG in county court seeking a return of their deposit. Their third amended complaint contained three counts: (I) Breach of Contract, (II) Violation of the Florida Deceptive and Unfair *823 Trade Practices Act, and (III) Violation of Florida Statute § 501.1375....

...After a trial in county court, a jury found that JPG breached the contract by not returning the remainder of the deposit (Count I). As to Count II, the trial court directed a verdict, rejecting the Deceptive and Unfair Trade Practices claim as a matter of law. The court tried Count III non-jury and found that JPG violated section 501.1375, Florida Statutes (2008)....

...Accordingly, the court entered final judgment in favor of the McLellans on both counts. JPG moved for a rehearing as to the statutory violation finding. The court denied the motion but noted that this was a case of first impression and requested review and guidance from our court on interpreting section 501.1375, Florida Statutes. [1] JPG argues that the trial court erred in finding that it violated section 501.1375, Florida Statutes, because the statute does not apply to contracts entered into between a building contractor and a party for the construction of a house upon real property already owned by the party at the time the contract is signed....

..."It is axiomatic that all parts of a statute must be read together in order to achieve a consistent whole," and "[w]here possible, courts must give full effect to all statutory provisions and construe related statutory provisions in harmony with one another." Forsythe, 604 So.2d at 455. Section 501.1375, Florida Statutes, is titled "Deposits received for purchase of residential dwelling units; placement in escrow; waiver; exceptions." The statute requires a "building contractor" or a "developer" to hold certain deposits of a prospective buyer of a one- or two-family residential dwelling unit in an escrow account unless the buyer waives the escrow requirements in writing. § 501.1375, Fla....

...The statutory definition of a "building contractor" is "any person who, for compensation, constructs and sells one-family or two-family residential dwelling units, except for a person who sells or constructs less than 10 units per year statewide." § 501.1375(1)(a) (emphasis added)....

...The definition of a "developer" is "either a building contractor who offers new residential units for sale or any person who offers a new one-family or two-family *824 residential dwelling unit for sale, except for a person who sells or constructs less than 10 units per year statewide." § 501.1375(1)(b) (emphasis added). When considering the meaning of terms used in a statute, courts look first to the terms' ordinary definitions. Tepper, 2 So.3d at 213. Critical terms used throughout section 501.1375 are "purchase," "purchaser," "purchase price," "sale," and "seller." These terms, in their plain and ordinary sense, refer to the purchase and sale of real property, in addition to whatever structure may be built upon the property....

...They are not ordinarily used to describe agreements solely for the performance of construction services. In addition, the statute makes numerous references to the term "closing," which is defined as follows: "the point in time at which legal title to the real property shall transfer from grantor thereof to grantee." § 501.1375(1)(c), Fla. Stat. The statute's definition of "closing" and its use of that term throughout the statute suggest that section 501.1375 was intended to apply to the sale of single-family residences at a "closing." The statute specifically provides that "the building contractor or developer shall be entitled to any interest accrued by the account, payable at closing." § 501.1375(4) (emphasis added). Similarly, it states that if the building contractor or developer borrows money equal to the deposit for construction purposes, the interest may be recovered from the buyer "at the time of closing." § 501.1375(4) (emphasis added). Moreover, it provides that if the funds of the buyer have not been previously disbursed in accordance with the statute, "they shall be disbursed to the building contractor or developer at the closing of the transaction." § 501.1375(7)(e)(emphasis added). The McLellans argue that the plain language of section 501.1375 demonstrates that the legislature intended the statute to apply to all building contractors who contract to build a single-family residence, regardless of who owns the land on which the residential dwelling unit is to be built....

...umers pay to contractors and developers, and that the statute does not expressly limit this protection to a consumer who is buying both the real property and the residential dwelling unit from the building contractor. [3] Indeed, the preamble to the section 501.1375, Florida Statutes, which was enacted in 1980, reveals its remedial purposes....

...it and the underlying land is conveyed to the buyer. No closing occurs when a consumer contracts with a general contractor to construct a single-family residence on the consumer's land because the consumer already owns the land. We further note that section 501.1375(8), Florida Statutes, which prohibits a construction lien on escrow deposits, evinces a legislative intent for section 501.1375 to apply to transactions involving a closing where the seller owns the land and the residence. As explained in the brief submitted by The Real Property Probate & Trust Law Section of the Florida Bar: In short, section 501.1375(8) protects buyers by requiring purchase deposits to be held in escrow and preventing lienors from making any claim against the deposit....

...d. There was no "closing" because title to the land already resided in the owners and JPG did not convey to them legal title to the dwelling unit or underlying land. Accordingly, JPG was not required to comply with the escrow deposit requirements of section 501.1375. We therefore reverse the final judgment entered against JPG as to the trial court's finding that JPG violated section 501.1375 (Count III). Further, we answer the certified question presented by the trial court in the negative: Section 501.1375, Florida Statutes, does not apply to a general contractor who contracts to build a single-family residence upon land *826 owned by the consumer at the time the contract is signed....