AMERICAN AUTOMOBILE INSURANCE COMPANY v. FDH INFRASTRUCTURE SERVICES, LLC ( 2023 )


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  •       Third District Court of Appeal
    State of Florida
    Opinion filed May 31, 2023.
    Not final until disposition of timely filed motion for rehearing.
    ________________
    No. 3D22-1143
    Lower Tribunal No. 21-11582
    ________________
    American Automobile Insurance Company, et al.,
    Appellants,
    vs.
    FDH Infrastructure Services, LLC,
    Appellee.
    An appeal from the Circuit Court for Miami-Dade County, Mark
    Blumstein, Judge.
    The Jones Law Firm, P.C., and Robert E. Jones (Jacksonville), for
    appellants.
    Mitrani, Rynor, Adamsky & Toland, P.A., Steven R. Adamsky
    (Weston), and Loren H. Cohen, for appellee.
    Before LOGUE, MILLER, and BOKOR, JJ.
    MILLER, J.
    In this appeal, we are called upon to determine which of two dueling
    statutes of limitation applies to subrogation claims arising out of a
    construction accident that claimed the lives of three workers during an
    antenna installation on a 952-foot tower in Miami Gardens, Florida.
    Appellants, American Automobile Insurance Company and Associated
    Indemnity Corporation (collectively the “Insurers”), challenge a final
    summary judgment finding their claims time-barred by the two-year
    professional malpractice limitation imposed in section 95.11(4)(a), Florida
    Statutes (2022). On appeal, the Insurers contend the claim is more properly
    governed by the four-year time limit set forth in section 95.11(3)(c), Florida
    Statutes (2022), because theirs is “[a]n action founded on the design,
    planning, or construction of an improvement to real property.” We find the
    latter statute more specifically applicable to the facts of this case.
    BACKGROUND
    Tower King II, a Texas-based specialty construction contractor, was
    charged with installing an upgraded antenna on an existing television tower.
    In anticipation of the installation, Tower King retained appellee, FDH
    Infrastructure Services, LLC, an engineering firm, to perform a structural
    analysis as to the stability and weight-bearing capacity of the tower. FDH
    was contractually obligated to assess the proposed rigging plan, which
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    included the use of a large wooden contraption, known as a “gin pole,” to lift
    the loads necessary to construct the antenna.
    FDH furnished Tower King with a “Qualified Engineering Review
    Letter,” which contained a spreadsheet setting forth the requested
    calculations. The installation commenced, and shortly thereafter, the rigging
    components failed. Three workers fell to their deaths, two nearby workers
    witnessed the tragedy, and construction equipment sustained damage.
    Confronted with a series of claims, the Insurers paid out benefits under their
    respective policies.
    The Insurers then filed suit against FDH, seeking equitable and
    contractual subrogation on the theory that erroneous load calculations
    precipitated the underlying insurance claims.        FDH sought summary
    judgment, alleging, among other grounds, the action was barred by the two-
    year professional malpractice statute of limitations contained in section
    95.11(4)(a).   The trial court granted the motion, and the instant appeal
    ensued.
    STANDARD OF REVIEW
    We conduct a de novo review of an order granting summary judgment.
    Volusia County v. Aberdeen at Ormond Beach, L.P., 
    760 So. 2d 126
    , 130
    (Fla. 2000).    Under Florida’s new standard, which mirrors its federal
    3
    counterpart, “summary judgment is appropriate where ‘there is no genuine
    dispute as to any material fact and the movant is entitled to judgment as a
    matter of law.’” Feldman v. Schocket, 47 Fla. L. Weekly D1930–31 (Fla. 3d
    DCA Sept. 21, 2022) (quoting Fla. R. Civ. P. 1.510(a) (2022)). Thus, “the
    correct test for the existence of a genuine factual dispute is whether ‘the
    evidence is such that a reasonable jury could return a verdict for the
    nonmoving party.’” In re Amends. to Fla. Rule of Civ. Proc. 1.510, 
    317 So. 3d 72
    , 75 (Fla. 2021) (quoting Anderson v. Liberty Lobby, Inc., 
    477 U.S. 242
    ,
    248 (1986)).
    ANALYSIS
    The resolution of this appeal requires us to examine two competing
    statutes of limitation. The first statute, section 95.11(4)(a), imposes a two-
    year limitation on actions for professional malpractice by privity claimants,
    whether founded on contract or tort. See Baskerville-Donovan Eng’rs, Inc.
    v. Pensacola Exec. House Condo. Ass’n, 
    581 So. 2d 1301
    , 1301–02 (Fla.
    1991).   The second statute, section 95.11(3)(c), sets forth a four-year
    limitation on “[a]n action founded on the design, planning, or construction of
    an improvement to real property.” Consistent with its plain language, the
    latter statute has been universally construed as extending to “any” and “all”
    actions “founded on the design, planning, or construction of an improvement
    4
    to real property.” See State, Dep’t of Transp. v. Echeverri, 
    736 So. 2d 791
    ,
    792 (Fla. 3d DCA 1999) (“[Section 95.11(3)(c)] applies to all actions ‘founded
    on the design, planning, or construction of an improvement to real
    property.’”); Dubin v. Dow Corning Corp., 
    478 So. 2d 71
    , 72 (Fla. 2d DCA
    1985) (“We read this language [in Section 95.11(3)(c)] to mean ‘any’ action
    arising out of improvements to real property, whether founded on contract or
    on negligence.”). Such a claim accrues on “the date of completion of the
    contract or termination of the contract between the professional engineer,
    registered architect, or licensed contractor and his or her employer.” §
    95.11(3)(c), Fla. Stat.
    When a cause of action is ostensibly subject to competing statutes of
    limitation, three well-entrenched tenets of statutory construction guide our
    analysis: (1) a specific statute preempts a more general statute; (2) a later
    statute is given effect over an earlier statute; and (3) if a doubt arises, the
    longer period of limitations should ordinarily prevail. See Carcaise v. Durden,
    
    382 So. 2d 1236
    , 1237 (Fla. 5th DCA 1980) (“Generally speaking, a special
    statute of limitations which addresses itself to specific matters will take
    precedence over a general statute.”); McKendry v. State, 
    641 So. 2d 45
    , 46
    (Fla. 1994) (“[W]hen two statutes are in conflict, the later promulgated statute
    should prevail as the last expression of legislative intent.”); 51 Am. Jur. 2d
    5
    Limitation of Actions § 76 (footnote omitted) (“If two or more statutes of
    limitation within a jurisdiction may apply to a cause of action, generally the
    statute providing the longest limitation period is preferred and will be
    applied.”).
    In determining which statute of limitation is more specifically applicable
    to the particular case, courts have looked to the nature of action and the type
    of injury sustained. Here, the Insurers seek relief in subrogation for claims
    they paid as the result of the structural failure of the rigging equipment.
    Section 95.11(3) applies narrowly to only construction-based claims.
    This provision stands in contrast to section 95.11(4), which encompasses
    any “professional malpractice” action. Consistent with this distinction, in
    Kelley v. School Board of Seminole County, 
    435 So. 2d 804
     (Fla. 1983), the
    Florida Supreme Court approved the application of section 95.11(3) in a case
    of professional negligence associated with the provision of architectural
    services. 
    Id. at 805, n.2
     (“Both the trial court and the [F]ifth [D]istrict found
    the 4-year statute applicable, and we agree with the district court that the
    language of (3)(c), rather than (4)(a), is more specifically applicable to this
    case.”). The same view has been adopted by several other courts. See
    Havatampa      Corp.    v.   McElvy,    Jennewein,      Stefany    &   Howard,
    Architects/Planners, Inc., 
    417 So. 2d 703
    , 704 (Fla. 2d DCA 1982) (applying
    6
    section 95.11(3)(c) to an action by building owner against architect,
    contractor, subcontractor, materialmen, and bonding company utilized in
    design and construction of new manufacturing facility); Hotels of Deerfield,
    LLC v. Studio 78, LLC, No. 21-60980-CIV, 
    2022 WL 1666976
    , at *4 (S.D.
    Fla. Mar. 7, 2022) (“[B]ecause [section] 95.11(3)(c) is more specific than
    95.11(4)(a) regarding claims against design professionals arising out of
    designs or improvements to real property, the former should control because
    more specific statutes preempt more general statutes as a matter of law.”);
    see also Luis Prat & Cary Wright, Rights and Liabilities of Architects and
    Engineers, in Florida Construction Law and Practice ch. 3.5 (10th ed. 2022)
    (quoting § 95.11(3)(c), Fla. Stat.) (“Actions for professional malpractice by
    privity claimants against the design professional, other than those actions
    arising out of the ‘design, planning, or construction of an improvement to real
    property,’ must be commenced within two years . . . .”); cf. Lillibridge Health
    Care Servs., Inc. v. Hunton Brady Architects, P.A., No. 6:08-CV-1028, 
    2010 WL 3788859
    , at *18 (M.D. Fla. Sept. 24, 2010) (footnote omitted) (rejecting
    defendant’s contention that section 95.11(4)(a) was more specific statute in
    action by owner of medical office building against architect and engineering
    firm for problems arising during construction of building and observing
    “Florida courts—to which this [c]ourt must defer on issues of state law—have
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    repeatedly applied paragraph (3)(c) rather than (4)(a) in suits against
    architects and engineers”).
    Analogizing this case to Manney v. MBV Engineering, Inc., 
    273 So. 3d 214
    , 216 (Fla. 5th DCA 2019), however, FDH contends the two-year statute
    is more suitable.    We find Manney inapposite.         In Manney, MBV, an
    engineering firm, was hired to review construction drawings and inspect a
    newly constructed home for structural defects. 
    Id. at 215
    . The Fifth District
    Court of Appeal held that section 95.11(3)(c) was inapplicable. 
    Id. at 216
    .
    The court reasoned that “while the inspection may have required the
    observation of completed ‘construction,’ this [did] not transform the claim into
    one founded on the ‘construction’ of an improvement to real property, as that
    term is commonly understood.” 
    Id. at 217
     (emphasis added).
    In contrast, in the instant case, FDH was contractually obligated to
    assess the structural integrity of the tower and rigging plan prior to the
    commencement of construction. Performing the calculations necessary to
    enable the construction of the new antenna on the existing building was part
    and parcel of that task. Given the parameters of the contract, the summary
    judgment record established the subrogation “action[s] [were] founded on the
    8
    . . . planning . . . of an improvement to real property.”1 § 95.11(3)(c), Fla.
    Stat. Consequently, we find this action falls within the ambit of the four-year
    limitation.
    Turning to the remaining issues on appeal, we summarily affirm the
    grant of summary judgment on the worker’s compensation claims. See
    Lincoln Nat. Health & Cas. Ins. Co. v. Mitsubishi Motor Sales of Am., Inc.,
    
    666 So. 2d 159
    , 161 (Fla. 5th DCA 1995) (“The insurer, as subrogee, stands
    in the shoes of its insured with respect to the insured’s tort claim against the
    tortfeasor.”); Reynolds v. State Farm Mut. Auto. Ins. Co., 
    611 So. 2d 1294
    ,
    1296 (Fla. 4th DCA 1992) (“[T]he impact rule stands for the proposition that
    before a plaintiff can recover damages for emotional distress caused by the
    negligence of another, the emotional distress suffered must flow from
    physical injuries the plaintiff sustained in an impact.”); Garcia v. San Antonio
    Hous. Auth., 
    859 S.W.2d 78
    , 81 (Tex. App. 1993) (promulgating Texas
    standard in actions for recovery due to bystander mental anguish caused by
    negligence of another and barring such actions unless bystander is closely
    related to physically injured party). But, adopting the sagacious reasoning
    set forth by our sister court in Tank Tech, Inc. v. Valley Tank Testing, LLC,
    1
    It is true that section 95.11(3)(c) is typically applied to cases involving latent
    construction defects. It is equally true, however, that the plain statutory
    language does not lend itself to a restrictive interpretation.
    9
    
    334 So. 3d 658
     (Fla. 2d DCA 2021), we reject the notion that a release is
    always a prerequisite to maintaining an equitable subrogation action. Id. at
    662 (quoting Kala Invs., Inc. v. Sklar, 
    538 So. 2d 909
    , 917 (Fla. 3d DCA
    1989)) (“[T]he propriety of a claim for equitable subrogation ‘depends on the
    facts and circumstances in each case’ and there is ‘no general rule or test
    for its invocation.’”). Here, the facts allow for the advancement of the claim
    without a release. Accordingly, we affirm in part, reverse in part, and remand
    for further proceedings.
    Affirmed in part, reversed in part, and remanded.
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