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Payton & Associates, LLC
Commercial Litigation Attorneys
Miami, Florida

What damages are available in Florida for a contract breach?

When Miami businesses are wronged by another person or business, it is important to know what options they have to correct the situation. For instance, last week, this blog discussed how businesses involved in legal disputes can enter settlement agreements, which can include provisions that are tailored to address the business' wants and needs.

Whether a business settles a dispute or proceeds to litigate it in court, the business needs to know what damages may be available. This will help the company formulate a proper strategy to resolve the dispute, whether that means demanding more in a settlement, or knowing what evidence to put on at trial to prove the damages that have been suffered.

The kinds of damages available will depend on the particular legal claims at issue. For example, in a contract dispute, Florida law establishes what damages are available for a breach of contract.

Typically, a party who breaches a contract will be ordered to pay compensatory damages, which is the sum of money that will put the other party in as good of a position as it would have been in had the defendant not breached the contract. Accordingly, if a business suffers damages of $500,000 because another business failed to hold up its end of the deal, the business can be awarded that amount in damages.

Other kinds of damages, called special damages, may also be available to compensate the party for those damages that would not normally result from the breach of contract. These damages require a different evidential showing in order to recover, however, as the business must show the other party knew or should have known of the special circumstances that lead to those damages.

Ultimately, damages in a contract case, like any other case, are designed to make the party whole after it have been wronged by another. The particular amount of damages available will necessarily depend on the facts of each case.

Source: Florida Supreme Court, "Florida standard jury instructions - contract and business cases," accessed on April 30, 2016

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