Rule Chapter 14-24, F.A.C., is being amended to clarify the procedure and requirements for the prompt and satisfactory settlement or legal defense of claims. The title of the Rule Chapter will be changed to “Surety Disqualification For Failure To ...  


  • RULE NO: RULE TITLE
    14-24.001: Provisions for Prompt Settlement or Legal Defense of Claims and Disqualification for Failure to Settle Claims
    PURPOSE AND EFFECT: Rule Chapter 14-24, F.A.C., is being amended to clarify the procedure and requirements for the prompt and satisfactory settlement or legal defense of claims. The title of the Rule Chapter will be changed to “Surety Disqualification For Failure To Settle Claims.”
    SUMMARY: The requirement of prompt settlement or legal defense of claims is addressed.
    SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
    Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
    SPECIFIC AUTHORITY: 334.044(2), 337.18(1) FS.
    LAW IMPLEMENTED: 334.044(28), 337.141, 337.18(1) FS.
    IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
    THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Deanna R. Hurt, Assistant General Counsel and Clerk of Agency Proceedings, Florida Department of Transportation, Office of the General Counsel, 605 Suwannee Street, Mail Station 58, Tallahassee, Florida 32399-0458

    THE FULL TEXT OF THE PROPOSED RULE IS:

    14-24.001 Prompt Settlement or Legal Defense of Claims and Disqualification for Failure to Settle Claims.

    (1) Any surety company providing a performance bond, that does not promptly and satisfactorily settle or provide a defense for claims or actions in connection with liabilities arising under a construction or maintenance contract for which the surety company previously furnished a bond shall be disqualified from issuing bonds for future Department construction or maintenance contracts by the Department in accordance with this rule.

    (2)(1) Within 90 days of the Department’s offer of final payment, the surety company shall provide to the Department Failure on the part of the surety to furnish an affidavit to the effect that these requirements have been met on a Contractor’s Affidavit and Surety Consent (Form 21-A), FDOT Florida Department of Transportation Form 700-050-21, Rev. 08/04, which is incorporated by reference herein under Rule 14-79.006, F.A.C. Failure to comply, to the Department within 90 days of the Department’s offer of final payment shall constitute grounds for disqualification. Preliminary notice of disqualification will be furnished to the surety company at least 21 30 days prior to disqualification. Qualification will be reinstated upon the Department’s receipt by the Department of the properly executed Form Contractor’s Affidavit and Surety Consent (Form 21-A).

    (2) Notice of the Department’s intended action will be provided in accordance with Rule 28-106.111, F.A.C. The Department’s action will become final unless a timely petition for a hearing is filed in accordance with Rules 28-106.104, 28-106.201, and 28-106.301, F.A.C. In order to be timely, the petition must be filed with the Department’s Clerk of Agency Proceedings within 21 days after receipt of the Department’s notice, in accordance with Rule 28-106.111, F.A.C.

    Rulemaking Specific Authority 334.044(2), 337.18(1) FS. Law Implemented 334.044(28), 337.141, 337.18(1) FS. History–Formerly 14-10.01, F.A.C., Amended 3-21-64, 9-24-75, Formerly 14-24.01, Amended 10-30-96, 1-17-99, 3-28-00, 10-19-04,__________.


    NAME OF PERSON ORIGINATING PROPOSED RULE: David A. Sadler, Director, Office of Construction
    NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Stephanie C. Kopelousos, Secretary
    DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 15, 2010
    DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: May 21, 2010

Document Information

Comments Open:
6/25/2010
Summary:
The requirement of prompt settlement or legal defense of claims is addressed.
Purpose:
Rule Chapter 14-24, F.A.C., is being amended to clarify the procedure and requirements for the prompt and satisfactory settlement or legal defense of claims. The title of the Rule Chapter will be changed to “Surety Disqualification For Failure To Settle Claims.”
Rulemaking Authority:
334.044(2), 337.18(1) FS.
Law:
334.044(28), 337.141, 337.18(1) FS.
Contact:
Deanna R. Hurt, Assistant General Counsel and Clerk of Agency Proceedings, Florida Department of Transportation, Office of the General Counsel, 605 Suwannee Street, Mail Station 58, Tallahassee, Florida 32399-0458
Related Rules: (1)
14-24.001. Prompt Settlement or Legal Defense of Claims and Disqualification for Failure to Settle Claims