Can You Still Be the Prevailing Party if You Recover Less Than Expected in a Florida Construction Dispute?

Construction disputes don’t always end with the plaintiff(s) recovering the full compensation they requested. For instance, a contractor or property owner may prove that the other party breached the contract but receive far less in damages than originally sought. Does that mean you can’t be the prevailing party? According to a recent Florida appellate court decision, the answer is no. You can still come out on top, even with a much smaller award.

At Bleakley Bavol Denman & Grace, our Tampa construction litigation attorneys guide parties through construction disputes across Florida. Whether your situation involves breach of contract claims, arbitration, or complex construction litigation, understanding your rights is crucial.

Construction Contract Dispute Ends in Arbitration

This case arose from homeowners and a homebuilder fighting over a residential construction contract. The homeowners said the builder breached the agreement. The builder fought back with counterclaims, blaming the homeowners for the breach.

Under the parties’ contract, any breach of contract claims had to go to arbitration. After hearing both sides, the arbitration panel agreed with the homeowners. They found the builder had breached the contract. The court threw out the builder’s counterclaims and awarded the homeowners roughly $139,000.

Although the homeowners had initially sought more than $700,000, the construction contract limited the types of damages they could recover, preventing them from obtaining consequential damages.

Trial Court Denied Prevailing Party Status

After the arbitration award, both sides wanted the court to declare them the prevailing party so they could recover attorneys’ fees and costs.

The trial court refused to name either side the prevailing party. The judge focused on the fact that the homeowners only recovered about 18 percent of what they’d claimed and decided that wasn’t enough to justify prevailing party status.

The homeowners didn’t accept that and filed an appeal.

The Key Issue: Who Won the Main Contract Dispute?

Florida’s Second District Court of Appeal reversed the trial court’s ruling. The appellate court explained that the key question is not whether a party recovered every dollar it sought but whether it prevailed on the significant issues in the litigation.

In this case, the main issue was which party breached the contract. The homeowners proved that it was the builder, defeated the builder’s counterclaims, and recovered damages. That outcome gave them the main benefit they sought, making them the prevailing party even though they didn’t recover all the damages they were seeking.

The court also pointed out that, normally, one side emerges as the prevailing party in breach of contract cases unless there are truly unusual circumstances. There weren’t any in this case.

Why This Decision Matters

Many construction contracts contain clauses about attorneys’ fees. Being labeled the “prevailing party” is often the key to recovering those damages after a dispute is resolved. This case makes it clear that winning isn’t just about recovering every dollar you asked for. What really matters is whether you win the main argument. If you do, you can still get your attorneys’ fees covered, even if you walk away with less money than you first claimed.

Contact Us for Legal Help

If you’re facing a construction contract dispute, contact our Tampa construction litigation attorneys at Bleakley Bavol Denman & Grace. We are ready to protect your interests and pursue the best possible outcome. Contact us today to discuss your case.

Source:

scholar.google.com/scholar_case?case=9249015685044527591&q=construction+litigation&hl=en&as_sdt=4,10,325,326,327&as_ylo=2026