Case Background
Solo Air Conditioning & Heating Co., Inc. filed a lawsuit against FCCI Insurance Company. Solo, a Florida corporation, operated out of Miami-Dade County. FCCI, also based in Florida, issued a payment bond connected to a public project located at 2100 NW 42nd Ave., Miami. The project involved construction work led by general contractor JABCO, LLC, under a prime contract with American Airlines. JABCO had procured a statutory payment bond from FCCI for the benefit of its subcontractors, including Solo.
Cause
On January 29, 2019, JABCO subcontracted Solo to perform HVAC work for the project. Solo completed its duties, including labor and air conditioning installation. The last work occurred on January 17, 2020. Despite completing its work, Solo received no payment from JABCO. This failure triggered Solo’s right to claim under the bond. Solo complied with Florida Statute §255.05, making it a valid claimant. FCCI, however, did not honor the bond, prompting legal action.
Injury
Solo completed its contractual obligations but remained unpaid. The non-payment caused financial strain. The company was left without reimbursement for labor, materials, and overhead. Solo’s business operations experienced disruption due to the missing payment. Legal intervention became necessary to recover the amount owed.
Damages
Solo sought $59,006.76 as unpaid contract value. The company also claimed interest, legal costs, and attorney fees under Florida law. Solo stated the lawsuit was timely filed, within one year of the last work. FCCI’s failure to pay constituted a material breach. As a result, Solo demanded full compensation through court judgment.
Key Arguments and Proceedings
Legal Representation
Plaintiff: Solo Air Conditioning & Heating Co., Inc.
Counsel for Plaintiff: Daniel R. Vega
Defendant: FCCI Insurance Company
Counsel for Defendant: Carlos C. Lloreda | Nestor C. Bustamante IV | Guy William Harrison | Robert E. Ferencik Jr. | Shamieka Caroline Joy Donawa
Claims
Breach of Contract
JABCO, LLC entered into a subcontract with Solo Air Conditioning & Heating Co., Inc. to perform HVAC work on a public construction project in Miami, Florida. Solo completed its contractual obligations by furnishing labor and materials. However, JABCO failed to pay Solo for the completed work. This failure violated the terms of the subcontract and constituted a material breach. As a result, Solo invoked its rights under a statutory payment bond issued by FCCI Insurance Company, which guaranteed payment to subcontractors like Solo.
Failure to Pay Covered Benefits Under Payment Bond
FCCI Insurance Company issued a payment bond pursuant to Florida Statutes §255.05, ensuring subcontractors would be compensated for their labor and materials. Despite Solo’s qualifying status and timely performance, FCCI refused to make payment under the bond for the amount owed. Solo alleged that FCCI’s refusal breached the terms of the bond agreement and applicable Florida law. This failure deprived Solo of funds rightfully earned and delayed the recovery of project-related expenses.
Legal Costs and Attorneys’ Fees
As a direct result of FCCI’s nonpayment, Solo retained legal counsel to pursue its contractual rights. The company incurred attorneys’ fees and legal costs in connection with this litigation. Pursuant to Florida Statutes §§ 255.05 and 57.041, Solo sought recovery of all reasonable fees and costs expended to secure payment through the bond.
Defense
The Cincinnati Insurance Company denied liability under the performance bond, arguing that JABCO failed to comply with required notice provisions before terminating its subcontractor, Solo Air Conditioning & Heating Co., Inc., or initiating replacement work. Cinci asserted that JABCO’s omission of notice violated both the subcontract and the performance bond terms.
Cinci also contended that the lack of notice prejudiced its contractual rights by depriving it of the opportunity to elect a remedy, such as undertaking performance or arranging for completion under the bond. This failure to adhere to procedural conditions barred or limited JABCO’s claims. Consequently, Cinci requested dismissal of the claims and recovery of attorneys’ fees and costs permitted by law.
Jury Verdict
On Feb 12, 2025, the jury ruled in favor of Plaintiff Solo Air Conditioning & Heating Co., Inc. in its bond enforcement case against FCCI Insurance Company.
The jury found that Solo had not waived its payment claim by signing a release and that FCCI breached the terms of the payment bond. The jury awarded $25,888.91 in damages to Solo.
Additionally, the jury determined that Solo did not breach its subcontract with JABCO, LLC. As a result, judgment was entered against FCCI Insurance Company.
