Five Mistakes to Avoid in a Breach of Contract Case in Florida

Five Mistakes to Avoid in a Breach of Contract Case in Florida

Contracts are the foundation of any partnership, laying out clearly-defined rights and obligations, but what happens when one party breaks a contract? A breach happens when a party fails to perform their obligations as required by the contract, such as failing to meet deadlines, providing defective work, or not paying agreed-upon amounts. A breach of contract in Florida can lead to serious consequences, from damage to relationships to costly legal and financial penalties. 

Whether you’re a business owner, contractor, or individual facing a breach of contract, taking prompt action to address the matter and protect your rights is important. Contract disputes can be complex, but knowing your rights can help you protect your interests and avoid several common mistakes.

Waiting Too Long to Take Action

Florida law enforces specific time limits on how long you have to take legal action, meaning that parties who want to file a breach of contract lawsuit must act within the restrictions defined by statute. The length of time you have for filing a lawsuit depends on the contract type:

• Five years for written contracts.
• Four years for oral agreements. 

If you wait too long to take legal action, you can lose your right to seek compensation. Following the violation, consult with a breach of contract attorney as soon as possible to avoid missing critical deadlines.

Failing to Identify and Prepare the Elements of a Contract Breach

In a rush to file a lawsuit, many individuals and businesses make the initial mistake of failing to properly document the facts of the alleged violation. If another party breaches a contract, you’ll first need to provide documented evidence to show that a valid contract exists, exactly how the other party failed to meet their obligations, and how the alleged breach led to damages.

Without clear proof of these components, your breach of contract claim may lack the credibility it needs to succeed in court. Therefore, it’s important to gather all relevant materials, starting with a copy of the contract. You should also have evidence of the contract breach as well as the ensuing financial damages, such as communication records and financial statements.

Retaliating or Publicizing the Breach

As a general rule, one breach of contract does not justify another, so you should avoid retaliating against the party who commits a contract breach, as it may lead to adverse consequences.

In some cases, a breach may justify non-performance, meaning failure to perform your reciprocal obligations after a contract breach is appropriate. However, if a breach does not justify non-performance, then a retaliatory breach of contract may warrant a counterclaim. In these cases, continuing to honor your end of the contract to avoid becoming a counter-defendant is important.

In addition to avoiding attempts at retaliation, business owners and individuals should also refrain from publicizing the breach within the community, whether through verbal communication or social media posts and comments. Though tempting, announcing an alleged breach can have unintended consequences, including defamation charges. There may come a time in the future when discussing your business’s dispute publicly makes sense, but one should avoid doing so unless advised by an attorney. 

Ignoring Alternative Dispute Resolution (ADR) Options

For victims of a contract breach, filing a lawsuit may not always be the best course of action. Most contracts include a requirement for either mediation or arbitration before parties proceed to litigation. Ignoring these steps could invalidate your claim or lead to unnecessary legal expenses. Arbitration proceedings are less formal than a trial and can be binding or non-binding, the difference being whether or not the parties agree to waive their rights to a trial in the event the dispute cannot be resolved through arbitration. 

In mediation, a third-party mediator helps facilitate communication between parties to help them move toward common solutions, arriving at a mutually agreeable decision that avoids the expense and hassle of court proceedings. Florida law mandates the confidentiality of mediation sessions, encouraging open and honest communication since discussions cannot be used against them in future proceedings.  Another option is a voluntary trial resolution (VTR), a private trial in which parties agree to allow an attorney to function as a sitting judge to resolve their case. Working with an experienced attorney can help you navigate these procedures.

Overlooking Available Damages

In a rush to file a lawsuit, some plaintiffs fail to understand the full range of breach of contract damages to which they may be entitled. Although the amount of damages you can recover depends on your actual losses, in some cases, you may be able to collect indirect damages. Types of damages a plaintiff can recover include:

• Compensatory damages – These are the direct financial losses experienced by the plaintiff.
• Consequential damages – These are indirect losses experienced from the breach and include foreseeable damages one can reasonably expect as a result of the breach. 
• Liquidated damages – Some contracts specify an amount to be paid in case of a breach.
• Attorney’s fees – Some contracts allow the plaintiff to seek payment of attorney’s fees in cases of a contract breach that leads to legal action. 

Given the range of potential damages available, a breach of contract attorney can help evaluate your case to ensure you receive the full amount owed.

Conclusion

The legal and financial consequences of contract breaches in Florida require strategic handling of the situation. To enhance your position in a breach of contract lawsuit while protecting your rights, it’s important to avoid these common mistakes. Reaching an effective resolution of contract disputes depends on taking informed and timely action through negotiation, mediation, and litigation processes. Consult an experienced breach of contract attorney at the beginning of your case to handle the complexities and deadlines to achieve positive results.

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