K.D. Construction of Florida, Inc. v. MDM Retail, Ltd.
A drywall subcontractor sought to foreclose its construction lien against the fee owner of a Miami property leased to a movie theater operator. The owner had recorded a lease containing a no-lien provision and claimed the exemption in section 713.10(2)(b), but it had also signed the direct construction contract as an "Owner," recorded the notices of commencement, and agreed to pay for its own scope of the work. The Third District reversed summary judgment for the owner, holding the recorded-lease exemption does not shield a lessor who itself contracts for the improvements.
Key facts
- Drywall subcontractor K.D. Construction sought to foreclose a construction lien against the fee owner of a Miami property leased to a movie theater operator.
- The fee owner had recorded a lease containing a no-lien provision but was also a named party and signatory to the direct construction contract, was designated as 'Owner,' recorded notices of commencement, and agreed to pay for its own scope of work.
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Why it matters
This decision draws a practical line around the section 713.10 no-lien lease defense: recording a lease with a no-lien clause is not a complete shield when the fee owner signs the construction contract and undertakes… — full analysis with a trial
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