BROWARD COUNTY, APPELLANT,
v.
RUSSELL, INC., A FLORIDA CORPORATION, APPELLEE
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Broward County appeals a jury verdict awarding damages to Russell, Inc., challenging the trial court's use of the Eichleay formula to calculate home office overhead damages and the refusal to instruct the jury on concurrent delay. The Florida District Court of Appeal affirms, establishing that the Eichleay formula is a proper method for calculating home office overhead damages when supported by competent evidence of actual damages.
The Eichleay formula is a proper method for calculating home office overhead damages provided there is competent evidence of actual damages of that variety. The trial court did not err in declining to instruct the jury on concurrent delay, as the instructions on proximate causation were sufficient and proper.
[1] The Eichleay formula is a proper method for calculating home office overhead damages when competent evidence of actual damages is presented.
[2] A trial court has broad discretion in determining jury instructions, and a reversal is warranted only upon a showing of prejudicial error resulting in a miscarriage of ju…
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Join FLexlaw to unlock all legal intelligence“We hold that the use of the Eichleay formula for the calculation of home office overhead damages is proper as long as there is competent evidence of actual damages of this variety having been sustained by the party seeking relief.”
Establishes the court's holding that the Eichleay formula is admissible and proper when supported by competent evidence of actual damages.
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Join FLexlaw to unlock all legal intelligenceRussell, Inc. was awarded $441,564 in damages by a jury, which included home office overhead damages calculated using the Eichleay formula. The formul…
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POLEN, Judge.
The appellant challenges the jury verdict entered in favor of the appellee in the amount of $441,564. Specifically at issue was the appellant’s entitlement to home office overhead damages which were calculated through the application of the Ei-chleay formula.1 The appellant also argued that the trial court should have instructed the jury on its version of the doctrine of concurrent delay.
We find no error in the use of the Ei-chleay formula. There was evidence in the record that the formula has been widely used for some time in the federal courts, by the boards of contract appeals and the Florida Department of Transportation. There was also evidence that the Eichleay formula has been used in Broward County courts in the past; however, no Florida appellate court has heretofore ruled on the admissibility and use of the formula for the purposes of litigation.
The appellant based its argument for the rejection of the Eichleay formula in large part on Berley Industries, Inc. v. City of New York, 45 N.Y.2d 683, 412 N.Y.S.2d 589, 385 N.E. 2d 281 (C.A.N.Y.1978). In that case the New York Court of Appeals rejected the use of the Eichleay formula rather boldly; however, the concurring opinion of Justice Jones more dispassionately demonstrated that while Eichleay may not have been of use in the case sub judice, it may still be a useful tool for measuring home office overhead damages in other cases where evidence of actual damages is more properly presented. 412 N.Y.S.2d at 592, 385 N.E. 2d at 284. The problem in Berley seems to be that the plaintiff did not offer evidence of actual home office overhead damages but applied the Eichleay formula mechanically, which the majority likened to an “administrative convenience.” 412 N.Y.S.2d at 591, 385 N.E. 2d at 283.
We hold that the use of the Eichleay formula for the calculation of home office overhead damages is proper as long as there is competent evidence of actual damages of this variety having been sustained by the party seeking relief. In holding as such we are aligning ourselves with Capital Electric Company v. United States, 729 F. 2d 743 (Fed.Cir.1984), and Williams Enterprises, Inc. v. Sherman R. Smoot Company, 938 F. 2d 230 (D.C.Cir.1991). In the latter two cases the use of the Eichleay formula was specifically condoned by the respective Federal Courts.
The remaining contention of the appellant is that the trial court erred in failing to give proposed instructions on concurrent delay. The doctrine of concurrent delay involves the premise that where both parties to the litigation caused delays then neither party can recover damages for that period of time when both parties were at fault. We find, and the appellant agreed, that the trial court’s instructions on proximate causation were proper ones to give and we do not find any reasonable possibility that the jury could have been misled by the absence of the proposed instruction. The trial court has wide discretion in decisions regarding jury instructions and we will not reverse on those grounds unless there is prejudicial error which would result in a miscarriage of justice. Goldschmidt v. Holman, 571 So. 2d 422 (Fla.1990). We find that there was no error in this case with regard to the jury instructions given by the trial court.
Accordingly, we affirm the final judgment in favor of the appellee in all respects.
DOWNEY and ANSTEAD, JJ., concur. .The Eichleay formula is a method for the calculation of home office overhead damages and is best described by the following diagram:
1. Delayed Contract Billings
_ X Total Home Office = Overhead
Contractor’s Total Billings Expenditures Allocable
to Contract
2. Overhead Allocable to the Contract
_ = Overhead Allocable Per Day
Days of Contract Performance
3. Daily Overhead x Days of Delay = Extended Overhead
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Citator
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Rucker v. Garlock, Inc., 672 So. 2d 100 (Fla. 3d DCA 1996)…rriage of justice arises where instructions are reasonably calculated to confuse or mislead the jury. Goldschmidt v. Holman, 571 So. 2d 422 (Fla.1990); Reyka v. Halifax Hosp. Dist. 657 So. 2d 967 (Fla. 5th DCA 1995); Broward County v. Russell, Inc., 589 So. 2d 983 (Fla. 4th DCA 1991); § 59.041, Fla.Stat. (1995). Rucker points to two of the trial judge’s decisions at the charge conference to support, the claim that he is entitled to a new trial. First, the trial judge denied Rucker’s request for Florida Stand…
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Martin Cnty. v. Polivka Paving, Inc., 44 So. 3d 126 (Fla. 4th DCA 2010)…amounts to a “suspension” of, a project. See, e.g., Broward County v. Brooks Builders, Inc., 908 So. 2d 536, 540-41 (Fla. 4th DCA 2005); Triple R Paving, Inc. v. Broward County, 774 So. 2d 50, 57 (Fla. 4th DCA 2000); Broward County v. Russell, Inc., 589 So. 2d 983, 984 (Fla. 4th DCA 1991). When a government suspension or its equivalent occurs, home office overhead damages to the contractor may arise and the Eichleay formula for calculating them may be applied. See id. But here, there was no government suspens…1 / 2
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Triple R Paving, Inc. v. Broward Cnty., 774 So. 2d 50 (Fla. 4th DCA 2000)…determine allocation of unabsorbed overhead to allow fair compensation of a contractor for government delay.” 105 F. 3d at 1421 (internal citations omitted). The Eichleay formula has been approved by this court. See Broward County v. Russell, Inc., 589 So. 2d 983 (Fla. 4th DCA 1991). Entitlement to Eichleay damages depends on proof of three elements: (1) a government-imposed delay occurred; (2) the government required the contractor to “standby” during the delay; and (3) while “standing by,” the contractor…
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Mark N. Goldschmidt, M.D. v. Jerri Taletha Holman, 571 So. 2d 422 (Fla. 1990)
- Cap. Elec. Co. v. The United States, 729 F.2d 743 (Fed. Cir. 1984)
- Williams Enters., Inc. v. The Sherman R. Smoot Co., 938 F.2d 230 (D.C. Cir. 1991)