Lam v. Modern Tampa Bay Homes, Inc.
After an arbitration panel found the builder breached the construction contract and rejected the builder's counterclaims, the trial court declined to designate anyone the prevailing party because the homeowners recovered only 18% of the damages sought (the shortfall being consequential damages barred by the contract). The Second DCA reversed, holding that where liability for breach was the significant issue litigated, the party who won on liability is the prevailing party regardless of the proportion of damages recovered.
Key facts
- Homeowners brought a breach of contract claim against a builder in arbitration; the arbitration panel found the builder breached but rejected the builder's counterclaims.
- The homeowners recovered approximately 18% of their claimed damages because the construction contract barred recovery of consequential damages.
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Why it matters
This opinion gives contract and construction litigators a clear rebuttal to the increasingly common argument that a plaintiff who recovers only a fraction of its demand cannot be the prevailing party for fee purposes… — full analysis with a trial
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