Construction Lender Liability
CONSTRUCTION LENDER LIABILITY TO SUBCONTRACTORS IN FLORIDA
Does a subcontractor have rights against a construction lender?
Yes. The Third District Court of Appeal held that a subcontractor may have a good-faith basis to allege a claim for equitable lien against a lender’s undisbursed construction loan proceeds. In RC Aluminum Industries v. Regions Bank, the Third District reversed an order dismissing a complaint by a subcontractor against a lender to impose an equitable lien and for unjust enrichment. The court held that the facts may show that the lender exercised affirmative deception on the subcontractor to keep it on the job; therefore the basis for an equitable lien may rest upon material misrepresentation, fraud, mistake, or unjust enrichment.
127 So. 3d 881 (Fla. 3d DCA 2013).