Three Key Limitations on Damages in Breach of Contract Claims in Florida
Through a breach of contract claim in Florida, a non-breaching party can pursue financial compensation for its damages. At Pike & Lustig, LLP, we represent both plaintiffs and defendants in breach of contract cases. Our commercial law firm helps clients navigate breach of contract disputes. Here, our Miami breach of contract attorney highlights three main limitations on damages in claims in Florida.
Background: Breach of Contract Damages are Compensatory, Not Punitive
First and foremost, it is crucial to emphasize that breach of contract damages in Florida are designed to be “compensatory” in nature. In other words, they are not designed to be a penalty against the breaching party. Instead, they are designed to ensure that the non-breaching party is in the same position that they would have been in if the contract had been performed.
Three Notable Limitations of Breach of Contract Damages in Florida
- Foreseeability
In Florida, breach of contract damages are limited by the principle of foreseeability. The legal doctrine requires that the damages arising from a contract breach must have been reasonably foreseeable to both parties at the time they entered into the contract. In other words, a non-breaching party can only recover those losses which the breaching party could have anticipated as a likely result of the breach during the formation of the contract. The foreseeability test prevents a non-breaching party from claiming exorbitant damages that could not have been predicted.
- Uncertainty
Damages in a breach of contract must not only be foreseeable but also certain. The limitation means that the non-breaching party can only recover damages that can be proven with reasonable certainty. Florida law requires that the claimant provides a clear demonstration of how the damages were calculated and insists that speculative or conjectural losses are not compensable. The plaintiff in a breach of contract claim in Florida must be prepared to present comprehensive, compelling evidence that demonstrates, with a reasonable degree of certainty, the damages.
- Avoidability
Finally, Florida law imposes a duty to mitigate damages on the non-breaching party. As explained by the Legal Information Institute, the duty to mitigate damages is defined as the non-breaching party’s “obligation to make reasonable efforts to limit the harm they suffer from another party’s actions.” Put another way, if damages are deemed “avoidable,” they are not recoverable through a breach of contract claim in Florida. The duty to mitigate prevents parties from being passive victims and encourages proactive behaviors to limit financial losses.
Contact Our Miami, FL Breach of Contract Attorney Today
At Pike & Lustig, LLP, our Florida breach of contract lawyers are committed to protecting the rights and interests of businesses. If you have any questions or concerns about contract damages, please do not hesitate to contact us today. From our offices in Miami and West Palm Beach, we take on breach of contract claims throughout Southeast Florida, including in Miami Beach, Fort Lauderdale, Jupiter, Palm Beach Gardens, Boca Raton, Wellington, and Coral Gables.
