ED SKODA FORD, INC., A FLORIDA CORPORATION, D/B/A FLAMINGO FORD, APPELLANT,
v.
P & P PAINT & BODY SHOP, INC., A FLORIDA CORPORATION, APPELLEE
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In this second appeal, the Florida District Court of Appeal reversed a damage award and remanded the case, holding that the trial court improperly included a three-year projection of lost profits in calculating damages for breach of contract. The court reaffirmed its prior mandate that officers' salaries must be included in income calculations but rejected the special master's addition of speculative future losses beyond the contract period.
The three-year projection of future losses is not a proper factor in calculating breach of contract damages. The correct measure of damages is limited to loss of profits that would have resulted from performance of the contract and that can be ascertained with reasonable certainty. The proper award is $29,975.71, reduced by the inclusion of officers' salaries as reflected in the appellee's income statements.
[1] Damages in a breach of contract action are generally measured by the loss of profits that would have resulted from performance and can be ascertained with reasonable cert…
[2] A court's mandate on remand must be followed by the trial court.
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Join FLexlaw to unlock all legal intelligence“Generally, the correct measure of damages in a breach of contract action, is the loss of profits which would have resulted from the performance of the contract and which may be ascertained with a reasonable degree of certainty.”
Establishes the proper legal standard for calculating damages in breach of contract cases, rejecting speculative projections beyond the contract period.
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Join FLexlaw to unlock all legal intelligenceEd Skoda Ford sued P & P Paint & Body Shop for breach of a lease agreement. The parties previously litigated this case before this court, which revers…
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PER CURIAM.
This is the second appearance of this cause before this court. See Ed Skoda Ford, Inc. v. P. & P. Paint and Body Shop, Inc., Fla.App.1973, 277 So. 2d 818.
In the previous appeal, we reversed that portion of the final judgment which adopted a finding contained in a special master’s report which eliminated officers’ salaries from the statements of income of the plaintiff-appellee, both before and after the cancellation of the lease.
We directed the trial court to enter an order including the officers’ salaries in the statements of income, thereby reducing the annual profit and the damage computation of $29,975.71 sustained by the appellee.
Thereafter, in accordance with the mandate of this court, the trial court entered an order awarding the appellee $12,710.24 as damages suffered, again following the recommendations contained in a report by the special master bearing the date June 11,1973.
The appellant now contends that the findings of fact rendered by the special master were not in compliance with the previous opinion and mandate of this court.
The revised damage computation made by the master included officers’ salaries and the appellee’s income statements. However, in his computation the master added a new consideration, to-wit: the amount lost or projected to be lost for three years following the termination of the lease.
In our view, this element is not a proper factor to be considered in measuring the amount of the appellee’s damages. Generally, the correct measure of damages in a breach of contract action, is the loss of profits which would have resulted from the performance of the contract and which may be ascertained with a reasonable degree of certainty. See, 9A Fla.Jur., Damages § 83.
Therefore, we conclude that the proper award in this case remains $29,975.71, reduced by the inclusion of officers’ salaries in the appellee’s statements of income as the same reflect a reduction in the appel-lee’s annual profit situation.
For the reasons stated, the judgment is reversed and the cause remanded with directions to enter a new judgment based upon the correct legal requirement.
Reversed and remanded.
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Fort Lauderdale Lincoln Mercury, Inc. v. Fallaro, 616 So. 2d 594 (Fla. 4th DCA 1993)…contract if the lost profits can be ascertained within a reasonable degree of certainty. See, e.g., Ed. L. Nezelek v. Southern Bell Telephone & Telegraph Co., 383 So. 2d 979 (Fla. 4th DCA 1980); Ed Skoda Ford, Inc. v. P & P Paint & Body Shop, Inc., 302 So. 2d 461 (Fla. 3d DCA 1974), cert. denied, 315 So. 2d 179 (Fla.1975). Because appellant’s claim for lost profits was not speculative, appellant is entitled to recover its lost profits as a portion of its compensatory damages. Reversed and remanded for furt…
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P & P Paint & Body Shop, Inc. v. ED Skoda Ford, Inc., 315 So. 2d 179 (Fla. 1975)…Certiorari denied. 302 So. 2d 461. ROBERTS, Acting C. J., and BOYD, McCAIN, OVERTON and ENGLAND, JJ., concur.…
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Plantation KEY Developers, Inc. v. Colonial Mortg. Co. OF Ind., Inc., 589 F.2d 164 (5th Cir. 1979)…of damages in a breach of contract action, is the loss of profits which would have resulted from the performance of the contract and which may be ascertained with a reasonable degree of certainty.” Ed Skoda Ford, Inc. v. P&P Paint & Body Shop, Inc., 302 So. 2d 461, 461-62 (Fla. 3d DCA 1974), cert. denied, 315 So. 2d 179 (Fla.1975). Lost profits, however, is not the exclusive measure of damages for breach of contract. Indeed, the nonbreaching party has the choice of recovering either loss of profits or damages…
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- ED Skoda Ford, Inc. v. P & P Paint & Body Shop, Inc., 277 So. 2d 818 (Fla. 3d DCA 1973)