From What Date Do You Measure Damages in Florida Construction Litigation?
Construction litigation often arises when one party accuses the other of breach of contract. For example, a contractor sues a customer for non-payment. Or perhaps the customer sues the contractor for defective work that failed to meet the agreed-upon quality standards. If you find yourself in either situation, the experienced Tampa construction litigation attorneys at Bleakley Bavol Denman & Grace can represent you in seeking appropriate compensation for your damages.
Florida Appeals Court Rejected 2022 Valuation of 2019 Defective Construction Claim
In assessing damages for a construction lawsuit, however, it is essential to understand that any financial losses must be calculated as of the date of the alleged breach of contract. This is an especially important concept in Florida construction litigation, as the value of real property can–and will–change over time. So, for example, if you are involved in a lawsuit over an alleged breach of a construction contract that occurred in 2022, your damages are based on the value of the property at that time, not when your case may be heard in court several years later.
A recent decision from the Florida Fourth District Court of Appeals, Vuletic Group LLC v. Malkin, provides a practical illustration of this concept. In this case, husband and wife homeowners hired a general contractor to remodel their house. Work under the contract continued until November 2019, when the homeowners fired the contractor. In 2020, the contractor filed a breach of contract lawsuit for non-payment of the remainder owed under the contract. The homeowners then filed a counterclaim, alleging the contractor was in breach for failing to perform work to the agreed-upon standards.
At trial, an expert witness retained by the homeowners testified that it would cost $414,372 to repair the damage caused by the contractor’s defective work. The witness based this figure on prices as of September 7, 2022. The trial judge accepted this figure and subsequently awarded the homeowners $414,372 in damages.
On appeal, the Fourth District reversed and entered judgment for the contractor. The appellate court agreed with the contractor that the trial judge “incorrectly awarded damages measured after the date of the alleged breach.” In this case, the alleged breach of contract occurred no later than November 2019, the date the homeowners fired the contractor. There was no legal basis for calculating an award of damages from September 2022, which was nearly three years after the breach. Accordingly, the “homeowners failed to prove the proper amount of damages at trial.”
The Fourth District added the homeowners were not entitled to a new trial on the issue of damages because that would unfairly give them a “second bite” at the apple. That was why the appellate court entered judgment for the contractor.
Contact a Tampa Construction Litigation Attorney Today
As the case above illustrates, it is not enough to prove a breach in a construction lawsuit. You also need to prove the amount of financial loss or other damages you sustained on the date of that breach. Doing so often requires quick assistance by qualified professionals, such as architects, engineers, contractors, or appraisers, who can conduct comprehensive inspection, testing, and evaluation of the property, as well as prepare written reports of their findings and the amount of damages to the property at the time of the loss. Don’t risk delaying your construction claim,
Our Tampa construction litigation attorneys can help you build a compelling case. Contact Bleakley Bavol Denman & Grace today to schedule a consultation.
Source:
scholar.google.com/scholar_case?case=15219927219217610315
