GSD Contracting, LLC v. All American Builders & Debris Removal, Inc.: Florida Appeals Court Affirms $71,582.98 Retainage After Mold Dispute on Hotel Project

Construction Defect Ruling Issued
Date
October 14, 2026
Court or forum
District Court of Appeal of Florida, Fourth District
State
Florida
Presiding judge
Spencer D. Levine
Property type
Hospitality
Amount / scale
$71,582.98 retainage affirmed; $45,300 unperformed-work award reversed
Parties
Appellant: GSD Contracting, LLCAppellee: All American Builders & Debris Removal, Inc.

On October 14, 2026, Florida's Fourth District Court of Appeal affirmed a trial court judgment that GSD Contracting, LLC breached its subcontract with All American Builders & Debris Removal, Inc. by withholding a $71,582.98 retainage owed on a five-story hotel project, after a mold-remediation dispute led GSD to terminate the subcontractor. The court reversed a separate $45,300 the trial court had also awarded for work All American never performed, since All American had never sought that amount and the subcontract itself barred recovery for unperformed work after a termination for convenience.

Why it matters

The decision is a reminder that termination-for-convenience and retainage clauses are enforced literally: absent an express termination-for-cause provision, a general contractor cannot rely on an alleged subcontractor default, including a dispute over remediation work, as grounds to withhold a retainage that has otherwise become payable under the contract's own terms. General contractors stepping into distressed projects as a replacement GC, as GSD did here, should confirm their subcontracts actually contain the for-cause termination and offset rights they intend to invoke before withholding payment, and should document safety and remediation responses, such as mold testing and a formal remediation plan, carefully enough to avoid a parallel breach finding.

Original source ↗
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Florida's Fourth District Court of Appeal affirmed in part and reversed in part a trial court judgment arising from a payment dispute between two contractors on a five-story hotel project, in an opinion issued October 14, 2026. The court upheld a finding that GSD Contracting, LLC breached its subcontract with All American Builders & Debris Removal, Inc. by withholding a $71,582.98 retainage, but reversed a separate $45,300 the trial court had also awarded All American for work it never performed, since the subcontractor itself had never sought that amount.

Case timeline · 2 entries Latest: October 14, 2026 — Florida's Fourth District Court of Appeal affirms the retainage award and reverses the award for unperformed work

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