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Statute of limitations on lien transfer bond claim

The Cool Guys, LLC v. Jomar Properties, LLC, 37 Fla. L. Weekly D574 (Fla. 4th DCA March 7, 2012). Holding:  Contractor’s transfer bond claim barred where it was filed more than two years after lien was transferred to bond.

Facts:  In February 2007, Cool Guys recorded a claim of lien for air conditioning work.   The Owner filed suit against Cool Guys and they filed a counterclaim seeking to foreclose on the lien.  In December 2007, the Owner posted a transfer bond transferring the lien to a surety bond.  Cool Guys received notice of transfer bond but did not file a claim against the transfer bond until two years later.

The Owner and surety moved for summary judgment alleging the transfer bond claim was barred under the one-year limitation period in Section 713.24(4) Florida Statutes.  The trial court granted the motion for summary judgment.  On appeal, Cool Guys argued that the one year limitation period should only apply where the lienor seeks to file an entirely separate action against the surety.  The Fourth District rejected this argument and noted that the language in Section 713.24(4) Florida Statutes is plain and unambiguous.

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