FAQ Business & Construction Litigation

A breach of contract occurs when one party fails to fulfill their obligations as outlined in a legally binding agreement. In business litigation, this often involves disputes over non-payment, failure to deliver goods or services, or non-compliance with confidentiality and non-compete clauses.

To prevail in a breach of contract claim, a plaintiff must prove the existence of a valid contract, a material breach by the defendant, and resulting financial damages. Because contracts are the lifeblood of commercial operations, litigation often focuses on the “materiality” of the breach whether the failure was significant enough to excuse the other party from their own obligations or to warrant a substantial damages award.

Construction delays are a primary source of high-stakes litigation. Common causes include unforeseen site conditions, design changes, labor shortages, weather disruptions, and slow regulatory approvals.

When a project stalls, the legal focus shifts to “excusable” versus “inexcusable” delays. An excusable delay may grant a contractor more time but no extra money, while an inexcusable delay could trigger “liquidated damages” pre-set daily fines for finishing late. Proving responsibility requires meticulous record-keeping and often involves forensic schedule analysis to determine which party sat on the “critical path” of the project’s timeline.

A Mechanic’s Lien is a powerful legal tool that provides a security interest in the title of a property for those who have supplied labor or materials to improve it. If a contractor or supplier goes unpaid, they can record a lien against the property, effectively preventing the owner from selling or refinancing until the debt is settled.

In Florida, the “Construction Lien Law” is strictly enforced. There are rigid deadlines for serving a “Notice to Owner” and recording the “Claim of Lien.” Failure to adhere to these timelines can result in the total loss of lien rights. Conversely, property owners must be diligent in ensuring they receive “Lien Waivers” from every subcontractor to avoid paying for the same work twice.

Tortious interference occurs when a third party intentionally damages a plaintiff’s contractual or business relationship with another person or entity. This is a common claim in business litigation when a competitor uses improper means such as spreading falsehoods or violating ethical standards to steal a client or disrupt a deal.

To win, a business must show that a valid relationship existed, the defendant knew about it, the defendant intentionally and improperly interfered, and the business suffered actual financial loss. This area of law is designed to protect “fair competition” while punishing “predatory” behavior that undermines the stability of the marketplace.

Yes. In fact, most construction and business disputes are resolved through Alternative Dispute Resolution (ADR), such as mediation or arbitration. Many modern construction contracts actually require arbitration, which is a private trial presided over by an expert in the field rather than a judge.

Mediation is a less formal process where a neutral third party helps the sides reach a voluntary settlement. ADR is often preferred because it is generally faster, more private, and allows for more creative solutions than a court judgment. However, if an opponent is unreasonable, traditional litigation remains the necessary path to enforce your rights and secure a judgment.

Liquidated damages are a specific sum of money, agreed upon in advance by the parties, that will be paid if a certain breach occurs most commonly a delay in project completion. They serve as an estimate of the losses the owner will suffer for every day the project remains unfinished.

For these clauses to be enforceable, the amount must be a reasonable forecast of actual damages and not a “penalty” meant to punish the contractor. If the court finds the amount is unconscionably high, it may strike the clause. Understanding the nuances of these provisions is essential during contract negotiation to limit a company’s financial exposure.

Partnership disputes arise when the owners of a business disagree on the direction, management, or financial distribution of the company. These cases often involve claims of “Breach of Fiduciary Duty,” where one partner is accused of putting their personal interests above the health of the business.

Litigation in these scenarios frequently involves an “Accounting,” where a court-ordered review of the company books is conducted. In extreme cases, a judge may appoint a “Receiver” to run the company or order a “Judicial Dissolution” to wind down the business and split the assets. Strategic litigation aims to resolve these “business divorces” with minimal disruption to ongoing operations.

Eminent Domain is the power of the government to take private property for public use, provided they pay “just compensation.” For business owners, this isn’t just about the value of the land; it’s about the “severance damages” to the remaining property and the “business damages” caused by the loss of access or visibility.

In Florida, business owners may be entitled to compensation for the loss of profits if the business has been at that location for at least five years. Because the government’s initial offer is often low, litigation is frequently necessary to ensure that the “just compensation” truly reflects the full economic impact of the taking on the business.

The distinction between latent and patent defects is critical for determining when a lawsuit must be filed.

• Patent Defects are obvious flaws that could be discovered by a reasonable inspection (e.g., a cracked window or a missing railing).
• Latent Defects are hidden issues that aren’t apparent until much later (e.g., improper soil compaction leading to foundation cracks years later).

The “Statute of Limitations” (the deadline to sue) usually begins when a patent defect is discovered. However, for latent defects, the “Statute of Repose” provides a final cutoff usually 10 years in Florida regardless of when the defect was found. Identifying the type of defect early is vital to ensuring your claim is not barred by time.