FDUTPA Watch: Florida Court Allows Competitor To Recover For Lost Profits In Deceptive And Unfair Practices Claims

A recent ruling in a key FDUTPA case in South Florida has expanded this ability of corporate competitor plaintiffs to recover financial compensation for their damages. In the case of Tymar Distribution LLC v. Mitchell Group USA, LLC the court determined that corporate-competitor plaintiffs have the right to seek compensation for “lost profits” under Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA). Here, our West Palm Beach deceptive & unfair trade practices lawyers provide an overview of the decision from the Florida court.

Case Review: Tymar Distribution LLC v. Mitchell Group USA, LLC 

The Facts 

The case of Tymar Distribution LLC v. Mitchell Group USA, LLC involves a corporation suing one of its competitors under the FDUTPA. One of Florida’s most important consumer protection laws, the FDUTPA allows competing businesses to serve as a plaintiff. 

The Legal Issue 

This case has a complicated procedural history. The plaintiff filed a lawsuit in Southern Florida. To do so, it relied on diversity jurisdiction. The defendant in the case moved to dismiss on the grounds that the controversy in question was not worth enough to satisfy diversity jurisdiction standards. In effect, the defendant’s motion to dismiss was based on the argument that the corporate-competitor plaintiff’s case had little value even if successful. In response, the plaintiff countered that they sustained significant lost profits as a consequence of the defendant’s conduct. 

The Decision 

In his decision, the Chief Judge of the Southern District of Florida found that a corporate-competitor plaintiff could satisfy the standard for diversity jurisdiction by claiming “lost profits.” In other words, the Southern District of Florida court determined that lost profits were a wholly legitimate remedy for corporate-competitor plaintiffs under the FDUTPA. 

The Takeaway 

This is an important FDUTPA decision because it helps to bring additional clarity to a long-standing issue under Florida law. There have been many questions raised regarding the specific rights of corporate-competitor plaintiffs under Florida’s powerful Deceptive and Unfair Trade Practices Act.

By ruling that lost profits are a legitimate remedy, the Florida court’s expansive decision increases the potential recovery for a corporate-competitor plaintiff in an FDUTPA claim. It makes it more advantageous for other companies to bring similar claims in the future.

In the past, some corporate-competitor plaintiffs have struggled to recover tangible compensation under the FDUTPA. Instead, they have been restricted largely to pursuing injunctive relief as a core remedy for violations. Lost profits offer an opportunity for a tangible, monetary recovery.

Get Help From an FDUTPA Claims Attorney in South Florida

At Pike & Lustig, LLP, our Florida deceptive and unfair trade practices attorneys are standing by, ready to take action to protect your rights. If you have any questions about recovering for lost profits through an FDUTPA claim, we can help. Our firm has the skills and expertise to represent both plaintiffs and defendants in claims. Contact us today for your strictly confidential initial consultation. We provide commercial law representation in West Palm Beach, Miami, and beyond.