How Florida’s Economic Loss Rule Affects Construction Disputes in Florida
When a Florida construction project goes sideways, the first instinct is to look for justice from the courts. While filing a legal claim may be the best course of action, Florida’s economic loss rule can limit your options in ways that catch many property owners and contractors off guard.
Our Florida construction litigation lawyer explains what the economic loss rule is and how it applies to construction disputes in South Florida.
What Florida’s Economic Loss Rule Does
Florida’s economic loss rule prevents parties from pursuing tort claims, such as negligence or fraud, when their dispute arises solely from a contract and the damages are purely economic. In other words, if you have a contract with another party and that party fails to perform, your remedy generally lies in a breach of contract claim, not a negligence lawsuit.
Situations where the economic loss rule commonly arises in construction disputes include:
- When contractors seek damages for a subcontractor’s defective work.
- When property owners attempt to sue design professionals for negligence under a contract.
- In construction defect disputes, where the only damages are repair costs.
- In claims against suppliers for delivering nonconforming materials covered by a purchase agreement.
- In fraud claims based solely on a party’s failure to perform contractual obligations.
- In negligence claims against a general contractor when a subcontract governs the relationship.
Knowing whether the economic loss rule applies to your situation can determine which claims you can bring and what damages you can recover.
How Florida’s Economic Loss Rule Affects Your Legal Strategy
The economic loss rule does not bar all tort claims in construction disputes. The Florida courts recognize exceptions where independent tort duties exist outside the contract.
Fraudulent inducement, for example, can support a tort claim even when a contract governs the parties’ relationship, because the fraud predates the contract. Similarly, claims involving personal injuries or property damages may fall outside the rule’s reach.
Key considerations in construction disputes involving the economic loss rule include:
- Whether your damages go beyond the contract’s subject matter, such as damage to other property.
- Whether the other party made fraudulent representations to get you to enter into the contract.
- Whether an independent tort duty exists outside the contractual relationship.
- Whether your claims involve personal injury, which the economic loss rule does not bar.
- Whether pleading both contract and tort claims creates strategic advantages or exposes you to dismissal.
Getting the legal strategy right from the start matters. An experienced Florida construction litigation lawyer can evaluate your claim and identify the best path forward.
Contact Our Experienced Florida Construction Litigation Lawyer Today
When Florida construction disputes arise, Florida’s economic loss rule can significantly affect your rights in filing a claim and what you can recover. Neuman Law, P.A. helps contractors, property owners, and developers navigate disputes and build a strong case.
We serve clients in Florida, Palm Beach County, Martin County, Broward County, Miami-Dade County, Monroe County, and Hillsborough County. Contact us today to request a consultation with our experienced South Florida construction litigation lawyer.
Sources:
casemine.com/judgement/us/5914f54dadd7b04934989d3d
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0713/0713.html