Legal Question in Civil Litigation in Florida

Re: Replace Home-Builder

Read your contract to see what rights you have, if any.

Re: Replace Home-Builder

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney�s individualized advice for you. By reading the �Response� to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

RESPONSE: Send a letter requesting adequate assurances that the contractor intends to complete, and a time frame for completion.

This is because The case of Ballard v. Krause 248 So.2d 233, *234 -235 (Fla. 4th DCA 1971) answers this question:

The question 'What is a contractor's measure of damages when an owner wrongfully terminates a contract?

Generally, the measure of damages where the cause of action is on breach of contract is lost profit that would have been realized and costs reasonably incurred in good faith in partial performance of the contract. Poinsettia Dairy Products, Inc. v. Wessel Co., 1936, 123 Fla. 120, 166 So. 306. The burden of establishing profit, as if there had been no breach of the contract, is on the contractor. Profit may be established by showing the total cost and expenses of labor, services and materials necessary to perform the contract and then deducting that sum from the contract price. The result is the profit. This may be expressed in the formula 'BP equals C minus Z' in which the builder's profit is 'BP,' the contract price is 'C' and the total costs of the builder for performing the contract are 'Z.'

Also, your damages for hiring a new contractor would be as set forth in American Structural Systems, Inc. v. R.B. Gay Const. Co., Inc., 619 So.2d 366, 367 (Fla. 1st DCA 1993)(�The measure of damages for cost to complete after breach of a construction contract where the contractor fails to complete performance is the difference between the contract price and the reasonable cost to complete the improvements in accordance with the contract.�)

Good luck,

Randall Gilbert

Re: Replace Home-Builder

My office is in Naples and I just had an interview with a potential client regarding the same scenario in LeHigh Acres --- the same county as Cape Coral. I would be interested to know who the home builder is as this situation seems to be more and more common down here in Southwest Florida.

The first key issue is what does your contract say? Are there any time requirements? If you did not have a real estate attorney involved prior to signing of the lease, then the contract is probably completely one sided in favor of the home builder.

These situations can be complicated depending upon the terms of your contract. There may be serious risks involved in attempting to break your contract including, but not limited to, losing your deposit and the contractor declaring you in breach and seeking their loss profits. Of course, doing nothing can also be costly.

You need to discuss this matter with a local attorney. If you would like to discuss this matter, please do not hesitate to contact me via e-mail at [email protected]