OSCEOLA COUNTY, FLORIDA, APPELLANT,
v.
BUMBLE BEE CONSTRUCTION, INC., ETC., APPELLEE

Fla. 5th DCA | 1985-12-12
No. 85-10
COBB, C.J., and UPCHURCH, J., concur.
479 So. 2d 310 Florida District Court of Appeal, Fifth District (1985) Positive Treatment
Cited by 4 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

Osceola County appealed a judgment in a construction contract dispute with Bumble Bee Construction, arguing the trial court erred in denying its liquidated damages claim, awarding prejudgment interest, and refusing to dismiss. The appellate court reversed the trial court's denial of liquidated damages and remanded for entry of a modified judgment accounting for the contractor's delay.


Holding

The court reversed the trial court's refusal to enforce the liquidated damages clause, finding it was enforceable because damages were not ascertainable at contract formation and $250 per day was not excessive. The court affirmed the prejudgment interest award and the denial of the motion to dismiss. The County was entitled to a $23,250 set-off (93 days × $250) after subtracting the 21 days caused by the change order.


Headnotes

[1] A liquidated damages clause is enforceable if it is not so excessive as to constitute a penalty and if damages resulting from breach were not ascertainable at the time th…

[2] A party may be entitled to a set-off for delays caused by the other party, even when seeking liquidated damages for overall project delay.

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Key Quotes

“A liquidated damages clause is enforceable if it is not so excessive as to constitute a penalty, and if damages resulting from failure to perform were not ascertainable at the time the contract was entered into by the parties.”

Establishes the two-part legal test for enforcing liquidated damages provisions

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Facts & Procedural History

Osceola County and Bumble Bee Construction contracted for construction of a tourist information center with a 180-day completion deadline and a provis…

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Opinion of the Court
SHARP, Judge.

SHARP, Judge.

Osceola County appeals from a judgment entered against it involving a construction contract. It argues the trial court erred in denying its claim for liquidated damages under the contract, in awarding prejudgment interest, and in failing to grant its motion to dismiss. We find no error as to the latter two points; but we reverse as to the first.

The County and Bumble Bee Construction, Inc., entered into a contract for the construction of a tourist information center in Osceola County. Bumble Bee sued the County for a balance due attributable to change orders and back charges which totalled $125,590.05. The County counterclaimed for liquidated damages under the contract. The contract provided that construction would be completed within 180 days, and thereafter the County would be entitled to $250.00 per day in damages, until the construction was substantially completed.

The jury found that the construction of the tourist center had been completed on May 20, 1981 — a delay of 114 days. It is clear from the record and the amounts involved that the jury disallowed the contractor recovery of any sums for change orders, except for the only properly authorized change order involving paving work. It allowed that claim in full. A 21-day delay was undisputedly caused by this change order, and should be apportioned to the County as its fault.1

The County offered testimony at trial that the old tourist center in use pending completion of the new center was little more than a “shed.” The County’s asserted damages for the delay encompassed far more than the rent it paid on the old center. It claimed lost revenue arising out of the County’s inability to attract tourists to the old tourist center. The record reveals that after the County moved to the new tourist center, the tourism volume “more than doubled.” Further, there was testimony that tourist dollars heavily impact the community and increase revenue from the tourist development tax, although the exact monetary loss could not be ascertained.

We think the trial court’s refusal to enforce the liquidated damage provision in this case was erroneous. A liquidated damages clause is enforceable if it is not so excessive as to constitute a penalty, and if damages resulting from failure to perform were not ascertainable at the time the contract was entered into by the parties. Hutchison v. Tompkins, 259 So. 2d 129 (Fla.1972). The case sub judice is a classic example for the enforcement of a liquidated damages clause. Damages were clearly incapable of being ascertained at the time the contract was entered into and the sum of $250.00 per day is not excessive under the circumstances.

Since the record and verdict in this case establish that the delay amounted to 114 days, and 21 days were directly attributable to the County for the paving job, we do not think it necessary to reverse and remand this cause for a new trial. The County is entitled to a set-off from the judgment of $23,250.00, based on a 93 day delay. This cause is therefore affirmed in part, reversed in part and remanded for entry of a final judgment consistent with this opinion.

AFFIRMED IN PART; REVERSED IN PART; AND REMANDED.

COBB, C.J., and UPCHURCH, J., concur. . United States Fidelity & Guaranty Co. v. Orlando Utilities Comm'n, 564 F.Supp. 962 (M.D.Fla. 1983).


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Citator

Cited By

  • Casavan v. Land O'Lakes Realty, Inc., 542 So. 2d 371 (Fla. 5th DCA 1989)
    …retained by the seller as liquidated damages. . See, e.g., Hyman v. Cohen, 73 So. 2d 393, 401 (Fla.1954); Multitech Corp. v. St. Johns Bluff Investment Corp., 518 So. 2d 427, 432 (Fla. 1st DCA 1988); Osceola County v. Bumble Bee Construction, Inc., 479 So. 2d 310 (Fla. 5th DCA 1985); Medical Equipment Rental Co. v. Tarr, 467 So. 2d 459, 460 (Fla. 4th DCA 1985); Berndt v. Bieberstein, 465 So. 2d 1264 (Fla. 2d DCA 1985); McNorton v. Pan American Bank of Orlando, 387 So. 2d 393, 396 (Fla. 5th DCA 1980), rev. de…
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