Christopher Cates and Joy Cates v. Ken Sarbu Construction Company, Inc.
The Fifth District affirmed the $9,596 change-order damages award, reading the record as a finding that the owners breached the change order. It reversed the ruling that the contractor was the prevailing party because the trial court used the wrong test, and it remanded for the court to apply the 'significant issues' test. Judge Makar concurred in part and dissented in part: he would have reversed the damages award as well and directed a finding of no prevailing party.
Key facts
- Homeowners hired Ken Sarbu Construction to remove and replace the balconies on their Amelia Island home. The job was expected to take about ten weeks but was still unfinished six months after the permit issued, and the owners barred the contractor from the property.
- The contractor recorded a claim of lien and sued for breach of contract and lien foreclosure. The owners counterclaimed for breach of contract, fraudulent lien, and negligence, and won summary judgment on the lien claims. The trial court found the lien fraudulent and discharged it.
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Holdings
- The prevailing party for attorney's fees is the party that prevailed on the significant issues tried. A trial court applies the wrong test when it names a prevailing party based only on who…
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Why it matters
This is a useful authority for construction lien and contract disputes that end in split or near-draw results. Getting a small net award does not automatically make a party the prevailing party for fees under section… — full analysis with a trial
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