By William B. Collum, Esq.
William Collum, Esq. Courtesy, Butler Weihmuller Katz Craig LLP
Prior to the elimination of assignment of benefits (AOB) contracts in property claims, contractors used no-price AOB contracts. When the insurer refused to pay the inflated estimate, the contractor would sue the insurer. Under Florida’s now-repealed attorneys’ fee statute, the attorneys’ fees demand would dwarf the amount of the inflated estimate.
Following reform, some contractors have switched tactics − using Florida’s construction lien statute to pressure the insurer with an inflated estimate and threat of a foreclosure lawsuit to take the insured’s home. With Florida’s construction lien statute containing a prevailing party attorneys’ fees provision (Fla. Stat. § 713.29), the contractor uses the old AOB playbook of adding attorneys’ fees to further increase the demand.
Florida Roof Specialists uses this playbook. Florida Roof Specialists convinces the homeowner to sign a no-price “contract” for roof replacement. Florida Roof Specialists thereafter submits an estimate to the insurer. Once the insurer pays what it believes is owed for a roof replacement, Florida Roof Specialists replaces the roof.
After roof replacement, Florida Roof Specialists then generates a new estimate greater than the original estimate. When the insurer does not pay the full amount of the new estimate, Florida Roof Specialists files a claim of lien and sues the homeowner to foreclose on the property.
Florida’s Attorney General has sued Florida Roof Specialists and its principal, Jeremy Rogero, in Citrus County Circuit Court, seeking to terminate all construction liens. The Attorney General’s lawsuit is at an early stage.
Importantly, these foreclosure lawsuits can be dismissed with prejudice at an early stage of the lawsuit. Courts have dismissed Florida Roof Specialists lawsuits, finding that the “contract” is illusory because it has no price or specific scope of work and because there is no way to determine the price from the “contract.” There is therefore no legal contract and Florida Roof Specialists cannot foreclose. Gables I Townhomes, Inc. v. Sunmark Restoration, Inc., 687 So. 2d 6 (Fla. 3d DCA 1996); Martin v. Jack Yanks Const. Co., 650 So. 2d 120 (Fla. 3d DCA 1995).
These dismissals, the most recent of which from Judge Robin Lanigan in Duval County, deliver hope to homeowners facing this situation and guidance to attorneys in defending these contractor tactics following Florida’s AOB reform.
William Collum is a Partner in the law firm of Butler Weihmuller Katz Craig LLP, representing insurers in various first-party property coverage issues and first-party property extra-contractual “bad faith” issues. He has broad experience in homeowner claims and complex, multi-property commercial claims. You can reach him at the firm’s Tampa office at 813-281-1900 or by email at [email protected]
LMA Newsletter of 10-20-25
