VAGABOND CONTAINER, INC., APPELLANT,
v.
CITY OF MIAMI BEACH, APPELLEE

Fla. 3d DCA | 1978-03-07
No. 76-1983
Before HAVERFIELD, C. J., and HEN-DRY and NATHAN, JJ.
356 So. 2d 1266 Florida District Court of Appeal, Third District (1978) Caution
Cited by 10 cases

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Synopsis

Vagabond Container appeals a jury verdict awarding it $100,000 in damages for breach of contract by the City of Miami Beach regarding a refuse container system. The appellate court reversed and remanded for a new trial, finding the trial judge erred by failing to instruct the jury on lost profits damages.


Holding

The trial judge erred by failing to instruct the jury on lost profits damages under Florida Statute Section 672.708(2). A seller in a breach of contract action is entitled to damages including lost profits, incidental damages, and recovery of the contract price for accepted goods.


Headnotes

[1] A seller is entitled to recover lost profits as damages when a buyer breaches a contract for the sale of goods.

[2] A seller may recover incidental damages in addition to lost profits when a buyer breaches a contract for the sale of goods.

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Key Quotes

“Pursuant to Chapter 672, Florida Statutes (1975), a seller is entitled to his full measure of damages from a buyer who has breached his contract for the sale of goods.”

Establishes the governing legal standard for damages in breach of contract cases involving sale of goods

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Facts & Procedural History

In December 1973, Vagabond Container contracted to supply Miami Beach with 20,000 refuse containers and 38 dump units. By July 1974, appellant had del…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

Appellant/plaintiff, Vagabond Container, Inc., appeals the damages portion of a final judgment entered in its favor against appellee/defendant, the City of Miami Beach. The primary contention on appeal is that the trial judge erroneously instructed the jury as to the elements of damages, resulting in an inadequate award. In 1973, appellant was engaged in the business of marketing a wheeled refuse container system. The system consisted of roll-out receptacles for garbage and trash, and “dump” units that mechanically lift the receptacles and dump the contents into a garbage truck.

In December of 1973, appellant and appellee entered into a contract whereby appellant was to furnish appellee with 20,000 receptacles and 38 dump units. In reliance upon the executed contract, appellant then entered into various sub-contracts with several suppliers who were to manufacture the component parts of the contracted goods.

By July 17, 1974, appellant had delivered to appellee some 2,060 garbage containers and 12 dump units, which appellee had accepted and put into use. Notwithstanding this acceptance, the containers proved to be faulty in that the lids to said containers (which had been replaced and redesigned on three separate occasions) warped, allowing water to seep into the refuse and creating a health problem. On the above date, appel-lee, acting through its official representatives at a City Council meeting, cancelled the contract.

Suit was thereupon filed by appellant in which it alleged breach of contract and sought damages in excess of $400,000.00. Appellee counterclaimed for breach of warranty alleging that the containers were unfit for the purpose for which they were created and sought damages in excess of $120,000.00.

At the conclusion of a jury trial, appellant was awarded $100,000.00 damages on its claim for breach of contract, while appellee was awarded $10.00 on its counterclaim for breach of warranty. A final judgment was thereupon entered by the trial judge which reflected the jury’s award. From that final judgment, appellant has taken this appeal, contending that the award of damages was grossly inadequate and contrary to the evidence. In support thereof, appellant has assigned as error a number of the instructions given to the jury by the trial judge on the issue of damages.

After carefully reviewing the record, briefs and arguments of counsel, it is our opinion that the trial judge erred in instructing the jury on the issue of damages recoverable by a seller upon breach of contract by the buyer. As such, and for the following reasons, we reverse the final judgment as it applies to appellant’s award and remand the cause for new trial on the damages issue.

Pursuant to Chapter 672, Florida Statutes (1975), a seller is entitled to his full measure of damages from a buyer who has breached his contract for the sale of goods. In determining the full measure of damages to be awarded, the jury should have been instructed in the following areas: lost profits, pursuant to Section 672.708(2), Florida Statutes (1975); incidental damages, pursuant to Section 672.708(2) and 710, Florida Statutes (1975); and recovery of the' contract price of any goods “accepted” by the buyer, pursuant to Section 672.709, Florida Statutes (1975). Sub judice, the trial judge failed to instruct the jury on damages recoverable by virtue of the lost profits of appellant. See Industrial Circuits Company v. Terminal Communications, Inc., 26 N.C. App. 536, 216 S.E. 2d 919, 17 U.C.C.Rep. Serv. 996 (1975).

It is the duty of the court to instruct the jury as to the proper measure of damages in the case and as to the elements to be considered in arriving at the damages. Security Mutual Casualty Company v. Bleemer, 327 So. 2d 885 (Fla.3d DCA 1976); Fournier v. Lott, 145 So. 2d 885 (Fla.3d DCA 1962). The failure to charge the jury on damages attributed to lost profits was error, and in light of the applicable law and recovery received, we must presume that such error harmfully influenced the jury’s verdict. Henning v. Thompson, 45 So. 2d 755 (Fla.1950).

Accordingly, the final judgment is reversed and remanded for new trial on the issue of appellant’s damages.

Other points raised by appellant need not be considered in light of our determination.

Reversed and remanded for new trial.


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Citator

Cited By

  • Meltzer v. Meltzer, 400 So. 2d 32 (Fla. 3d DCA 1981)
    …the order under review, July 3, 1979, rather than making the increase fully retroactive to the filing of the original petition for modification on August 1,1974.3 Again, we find no error. It is indeed the case that both Meltzer v. Meltzer, supra, at 356 So. 2d 1266, and the earlier decision in Meltzer v. Meltzer, 262 So. 2d 470, 472 (Fla. 3d DCA 1972), held that any increase should take effect from the date that the respective application for modification was filed. But it is obvious that each case was based o…
  • Fla. Mining & Materials Corp. v. Standard Gypsum Corp., 550 So. 2d 47 (Fla. 2d DCA 1989)
    …r’s breach of contract (sections 672.713-672.715), an aggrieved seller is limited to recovering lost profits and incidental damages as its remedy for a breach of contract. § 672.708, Fla.Stat. (1987); Vagabond Container, Inc. v. City of Miami Beach, 356 So. 2d 1266 (Fla. 3d DCA), cert. denied, 364 So. 2d 882 (Fla.1978). Appellee argues that the U.C.C. as codified in Florida in chapter 672 does not preclude the parties to a contract of sale from expressly agreeing to damages exceeding or differing from those e…
  • The Ivens Corp. v. HOBÉ CIE Ltd., 555 So. 2d 425 (Fla. 3d DCA 1989)
    …ond, we reject the defendant Ivens Corporation’s contention that the trial court erred in awarding the plaintiff lost profits. There was clearly sufficient evidence to support the damages awarded. See Vagabond Container, Inc. v. City of Miami Beach, 356 So. 2d 1266 (Fla. 3d DCA), cert. denied, 364 So. 2d 882 (Fla.1978); Tech Corp. v. Permutit Co., 321 So. 2d 562 (Fla. 4th DCA 1975); Cayuga Harvester, Inc. v. Allis-Chalmers Corp., 95 A.D.2d 5, 465 N.Y.S.2d 606 (1983); Borne Chem. Co. v. Dictrow, 85 A.D.2d 646,…

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