Construction Law

Trump Endeavor v. Fernich, Inc.

In Trump Endeavor 12 LLC v. Paint Spot, Trump appealed two trial court orders: (1) a final judgment of foreclosure on a construction lien by Paint Spot for Trump’s failure to pay Paint Spot $32,535.87 for materials supplied to the project; and (2) a final judgment awarding attorney’s fees and costs to Paint Spot. Paint Spot was mistakenly given a Notice of Commencement for a second project that was being completed concurrently with the project Paint Spot was a material supplier on. Due to the mistake, Paint Spot provided a copy of the Notice to Owner (as required by statute) to the general contractor on the second project which Paint Spot was not a material supplier for.

The general contractor of the project Paint Spot was a supplier for noticed the mistake and informed Paint Spot of the error. Despite Paint Spot failing to remedy the error, the Court upheld both of the trial court orders. The Court found strict compliance with the statute that requires a copy of the Notice to Owner to be provided to the general contractor was not required, and instead substantial compliance was the standard to be applied as indicated in the wording of the statute. Instead, the Court found Paint Spot substantially complied because the general contractor had actual knowledge of: the mistake, that Paint Spot was supplying materials to the project, and that Paint Spot intended to lien the property if not timely paid.

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