HIGHTOWER GEOTECHNICAL SERVICES, INC., APPELLANT/CROSS-APPELLEE,
v.
HBE-FLORIDA CORPORATION, ET AL., APPELLEE/CROSS-APPELLANTS
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Hightower, a subcontractor, appealed a judgment in a construction contract dispute with general contractor HBE. The court reversed the trial court's award of completion costs to HBE, finding that HBE could not charge Hightower for work performed by a replacement subcontractor when no evidence showed HBE spent more to complete the work than it would have paid Hightower.
The court held that the trial court properly denied retainage because the reasonable value of Hightower's work did not exceed what it was paid plus the $5,375.10 awarded. However, the court held that the trial court erred in awarding HBE completion costs because no evidence showed HBE expended more money than it would have paid Hightower to complete the work, and allowing such an award would improperly permit HBE to receive work at no cost.
[1] A general contractor cannot recover damages from a subcontractor for the cost of completing the work if the contractor did not expend more than it would have paid the sub…
[2] A party cannot recover the cost of completing a project if the injured party is not required to pay the breaching party for any of the work performed on the final phase.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Since HBE was not required to pay Hightower for any of the work it performed on the last phase (except the $5,375.10 for unrelated work during that phase), it could not properly charge Hightower for the money it paid another subcontractor to complete that phase. To do so would improperly allow HBE to receive the work performed on the last phase at no cost.”
The court's core reasoning for reversing the award of completion costs to HBE, establishing that damages must be limited to actual excess costs incurred.
Previewing 1 of 2 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceHBE hired Hightower as a subcontractor to perform chemical grout stabilization for a hotel construction project. During construction, Hightower's work…
The full statement of facts, procedural history, and disposition for this case are member content.
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PALMER, J.
Hightower Geotechnical Services, Inc. (Hightower) appeals the final judgment entered by the trial court arising out of litigation between the parties involving a construction contract. Appellees filed a cross-appeal. Determining that the trial court improperly entered a judgment for certain amounts against Hightower, we reverse and remand for entry of an amended final judgment.
Hospital Building and Equipment Company (HBE) is a general contractor that was hired by HBE-Florida to construct an addition onto an Adam’s Mark Hotel. Hightower is a subcontractor who entered into a subcontract with HBE to perform chemical grout stabilization around the construction site.
During the course of construction, problems arose with Hightower’s work. As a result, Hightower was removed from the job. HBE refused to pay two of Hightower’s invoices based on the alleged unsatisfactory work. HBE also hired a different subcontractor to complete the work which was originally to be performed by High-tower. Hightower filed a complaint against HBE and HBE-Florida seeking to establish and foreclose a construction lien on the hotel property and for breach of contract. HBE filed a counter-claim alleging a breach of contract claim against High-tower. At trial, Hightower stated it was paid $238,075.20 for its work but contended that it was due additional monies, including re-tainage and unpaid contract sums. HBE claimed, among other things, that it was entitled to recover from Hightower the money it spent to complete the project.
After conducting a bench trial, the trial court concluded that Hightower was owed $5,375.10 for services performed in the last phase of the contract. The court also found that HBE was entitled to recover damages incurred by it in completing the last phase of the work. As a result, a net judgment was entered in favor of HBE.
On appeal, Hightower argues that the trial court erred in denying its motion to amend the final judgment to add an award for unpaid retainage. We find no error in the trial court’s factual conclusion that Hightower was not entitled to recover the retainage because the reasonable value of the work it performed did not exceed the amount it was paid plus the $5,375.10 awarded to it in the final judgment.
However, we conclude that the trial court did err in awarding HBE the money it expended in completing the project after Hightower was removed from the job. No evidence was presented that HBE expended more money to complete the work than it would have paid Hightower if it had properly completed the work. Since HBE was not required to pay Hightower for any of the work it performed on the last phase (except the $5,375.10 for unrelated work during that phase), it could not properly charge Hightower for the money it paid another subcontractor to complete that phase. To do so would improperly allow HBE to receive the work performed on the last phase at no cost. See Mnemonics, Inc. v. Max Davis Assoc., Inc., 808 So. 2d 1278 (Fla. 5th DCA 2002) (holding that an award of damages for breach of contract is intended to place the injured party in the position he or she would have been had the breach not occurred).
Accordingly, we reverse the final judgment and remand this case to the trial court for the entry of a judgment in favor of Hightower in the amount of $5,375.10 and for such other relief as is warranted by this opinion.
In closing, we note that Hightower has filed a motion with this court seeking an award of appellate attorney’s fees pursuant to the provisions of section 713.29 of the Florida Statutes on its claim for foreclosure of a construction lien. We provisionally grant that motion and direct the trial court to determine whether Hightower is entitled to prevail on its claim for foreclosure of its construction lien and, if so, to determine the reasonable amount of appellate fees to be awarded.1
AFFIRMED in part; REVERSED in part; and REMANDED.
GRIFFIN and EVANDER, JJ., concur. . It appears from the record that the only reason Hightower did not prevail on its construction lien claim was because it did not receive a net judgment in its favor. However, it is possible that other grounds existed to deny that claim, but were not articulated by the trial court because of its entry of a net judgment in favor of HBE.
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- Mnemonics, Inc. v. MAX Davis Assocs., Inc., 808 So. 2d 1278 (Fla. 5th DCA 2002)