Third DCA Clarifies Damages in Breach of Services Contract

What are the damages when a 5-year landscaping contract for monthing lawn care between a homeowner’s association and lawn mowing company is breached?  The monthly rate?  Total contract fee?  Lost profits?

Lost profits, according to the Third District in Marbella Park Homeowner’s Association, Inc. v. My Lawn Service, Inc. (Gersten, Cortinas, and Salter).  grass2

“The measure of damages for breach of a services contract is the non-breaching party’s lost profits.”  Those are calculated by taking the performance costs and subtracting them from the contract price.  Here, it would be the price of the monthly mowing minus the cost of that service.  The burden is on the non-breaching party and thus an evidentiary hearing is required.

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