“The consequential nature of loss . . . is not based on the damages being unforeseeable by the parties. What makes a loss consequential is that it stems from relationships with third parties, while still reasonably foreseeable at the time of contracting.” Keystone Airpark Auth. v. Pipeline Contractors, Inc. , 266 So. 3d 1219 (Fla. 1st DCA 2019). The most common form of consequential damages is lost profits.
However, lost profits do not always constitute consequential damages as a matter of Florida law. “Lost profits are recoverable as general damages where they flow directly and immediately from the breach of a contract.” Bird Lakes Dev. Corp. v. Meruelo, 626 So. 2d 234 (Fla. 3d DCA 1993). Indeed, “when the non-breaching party seeks only to recover money that the breaching party agreed to pay under the contract, the damages sought are general damages.” HCA Health Services of Florida, Inc. v. CyberKnife Ctr. of Treasure Coast, LLC, 204 So. 3d 469 (Fla. 4th DCA 2016). Lost profits can constitute general damages when the non-breaching party seeks to recover the total value of the breaching party’s promised payments less the cost of performance.
Peter Mavrick is a Fort Lauderdale business litigation lawyer, and represents clients in Miami, Boca Raton, and Palm Beach. This article does not serve as a substitute for legal advice tailored to a particular situation.