Petrogram - Fall 2011 - (Page 19)
Lien On Who?!
A Briefing on Florida’s Construction Lien Law
George W. Hatch & Robert D. Fingar
“The Mechanics’ Lien Law has long been recognized as an outstanding example of inept legislative endeavor, perplexing alike the bench and bar, contractors, owners, materialmen and workmen.” —Judge John S. Rawls, Miller v. Duke, 155 So. 2d 627, 631 (Fla. 1st DCA 1963)1
ou’ve had a discharge from one of your underground storage tanks. Fortunately, you purchased and maintained storage tank liability insurance to demonstrate financial responsibility for taking corrective action caused by accidental releases from the operation of petroleum underground storage tanks as required by section 376.309, Florida Statutes and 40 CFR §§ 280.93 and 280.97. In return for the premiums that you’ve been paying all these years, your insurance company was more than willing to step up to the plate and assume responsibility to pay the hundreds of thousands of dollars in assessment and remediation costs. OK, maybe there was that little matter of the insurance company initially denying the claim, arguing that you failed to timely report the discharge, arguing that you failed to “confirm” the release, arguing that the discharge occurred prior to the retroactive date in your policy and asserting a myriad of other exclusions to coverage. And you did have to file that lawsuit, produce boxes of documents and have your deposition taken. But now the coverage issue is resolved—either by trial or settlement. Problem solved. Same team going forward, right? The assessment and remediation work will take several years to perform. The average cleanup costs about $400,000. There will be various contractors and subcontractors performing work on your property. Typically, the site owner will contract directly with the environmental cleanup contractor and will, of course, pay invoices. But, what happens when the insurance
Table of Contents for the Digital Edition of Petrogram - Fall 2011
Welcome, New Board Members
FPMA 2011 Convention and Sunshine Food & Fuel Expo!
FPMA Featured Advertiser Marketplace
Lien On Who?!
Out and About the Industry
Conference of Committees
Index of Advertisers/Advertiser.com
Petrogram - Fall 2011