DADE COUNTY, FLORIDA, APPELLANT,
v.
PALMER AND BAKER ENGINEERS, INC., APPELLEE; PALMER AND BAKER ENGINEERS, INC., APPELLANT, V. DADE COUNTY, FLORIDA, APPELLEE

5th Cir. | 1964-12-08
No. 21228
339 F.2d 208 Court of Appeals for the Fifth Circuit (1964) Positive Treatment
Cited by 4 cases

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Holding

The court held that the award of damages based on the plaintiff's reasonable and necessary expenses incurred in good faith partial performance was proper, and the defendant failed to meet its burden of proving a net loss would have resulted from full performance.


Facts & Procedural History

Following a prior appeal where the court affirmed a breach of contract finding, the trial court awarded the plaintiff damages for expenses incurred in…

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Opinion of the Court
PER CURIAM:

PER CURIAM:

Subsequent to our previous decision (5 Cir., 318 F. 2d 18), the Court below held a further hearing as a result of which it entered a decree awarding plaintiff (Palmer and Baker Engineers, Inc.) damages. The contract was discussed in detail when the case was here before. We affirmed the finding that defendant breached it. We remanded and instructed the trial court to consider what amount, if any, plaintiff was entitled to recover. The legal principles to be applied seem quite plain and were clearly enunciated.

On remand, plaintiff took the position that it was entitled to the reasonable and necessary expenses incurred in good faith in partial performance, plus anticipated profits which it would have earned in completing the project. The trial court denied plaintiff’s claim for anticipated profits, saying “any award of damages based on loss of profits would be extremely speculative and must be denied.” The record emphatically supports this conclusion.

The district court granted judgment in the amount of $241,626, plus interest. This award was not made on the basis of a “re-writing of the contract,” but was the sum total of the reasonable and necessary expenses incurred in good faith by plaintiff in partial performance. This award is precisely proper under our former decision, but defendant argues “full performance by the plaintiff would have resulted in a net loss to the plaintiff, and therefore there should be no recovery whatsoever.” The burden is on defendant to prove that full performance would have resulted in a net loss. De fendant has totally failed to carry such a burden.

This record convincingly demonstrates that without a “crystal ball” it was impossible (in the posture of the project at the time of the breach) for anyone to do anything but speculate as to whether or not there would have been a profit and as to whether or not there would have even been a completed contract.

The judgment of the district court was correct. It is affirmed.


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