A & P Bakery Supply & Equipment Co. v. Hawatmeh, 79-1406

Citation388 So.2d 1071
Decision Date23 September 1980
Docket NumberNo. 79-1406,79-1406
CourtCourt of Appeal of Florida (US)
Parties30 UCC Rep.Serv. 199 A & P BAKERY SUPPLY & EQUIPMENT COMPANY, a Florida Corporation, Appellant, v. Salameh K. HAWATMEH, Appellee.

Greenfield & DuVal and Harvie S. DuVal, North Miami, for appellant.

Penzick & Parker, Rohan & Rohan and Lawrence J. Rohan, Miami, for appellee.

Before HENDRY, NESBITT and BASKIN, JJ.

HENDRY, Judge.

The parties entered into discussions regarding the sale to appellee of a damaged commercial oven owned by appellant. A jury found that those discussions culminated in a contract, which appellant breached by his sale of the oven to a third party. We are not disposed to reverse the findings of the jury in that regard. However, we reverse that portion of the verdict pertaining to appellee's damages award, and remand for new trial on that issue.

When appellant sold the defective oven, and thereby breached his contract for sale to appellee, appellee covered his loss shortly thereafter by the purchase of a used oven for less than one quarter of the price which he had negotiated for the purchase of appellant's equipment. It appears, and it is not disputed, that the oven ultimately purchased by appellee is the functional equivalent of the more expensive model.

Although the trial judge warned the jury that their damages award should not be based upon speculation or conjecture, he allowed, with that caveat, their consideration of the issue of lost profits stemming from appellant's breach. This was error.

The law regarding damages for loss of profits has been clearly fixed: Although

(t)he well-recognized general rule in this state is that anticipated business profits are too remote, speculative and contingent to warrant a judgment for their loss, . . . .

Touchette v. Bould, 324 So.2d 707 (Fla. 4th DCA 1975), nevertheless,

(i)n Twyman v. Roell, 123 Fla. 2, 166 So. 215 (1936), the Supreme Court held that "if prospective profits form an elemental constituent of the contract, their loss, the natural result of its breach, and the amount can be established with reasonable certainty, such certainty as satisfied the mind of a prudent and impartial person, they are allowed. The requisite to their allowance is some standard, such as regular market values, or other established data, by reference to which the amount may be satisfactorily ascertained." (Emphasis supplied)

Welbilt Corp. v. All State Distributing Co., 199 So.2d 127 (Fla.3d DCA 1967).

Appellee's business venture was in its inception at the time of appellant's breach, and therein lies the trial court's error: Proof of profits for a reasonable time anterior to the breach is required to establish lost profits. New Amsterdam Casualty Co. v. Utility Battery Manufacturing Co., 122 Fla. 718...

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16 cases
  • Dictiomatic, Inc. v. U.S. Fid. & Guar. Co., 93-2123-CIV.
    • United States
    • U.S. District Court — Southern District of Florida
    • January 21, 1997
    ...is required to establish lost profits. Wash-Bowl, Inc. v. Wroton, 432 So.2d 766 (Fla. 2d DCA 1983); A & P Bakery Supply & Equipment v. Hawatmeh, 388 So.2d 1071 (Fla. 3rd DCA 1980). In the present case, the history of successful sales of the Hexaglot T-427 and T-150 is not sufficient to esta......
  • T.D.S. Inc. v. Shelby Mut. Ins. Co.
    • United States
    • U.S. Court of Appeals — Eleventh Circuit
    • May 24, 1985
    ...of the contract sued upon. Polyglycoat Corp., 442 So.2d at 959; Wash-Bowl, Inc., 432 So.2d at 767; A & P Bakery Supply & Equip. Co. v. Hawatmeh, 388 So.2d 1071, 1072 (Fla.Dist.Ct.App.1980). It is undisputed that TDS had no history of past profits, and, therefore, any award for loss of futur......
  • G.M. Brod & Co., Inc. v. U.S. Home Corp.
    • United States
    • U.S. Court of Appeals — Eleventh Circuit
    • May 10, 1985
    ...of profits for a reasonable time anterior to the breach is required to establish lost profits." A & P Bakery Supply & Equipment Co. v. Hawatmeh, 388 So.2d 1071, 1072 (Fla. 3d DCA 1980) (citations omitted). Home then jumps to the erroneous conclusion that since Brod was in business for only ......
  • Dictiomatic, Inc. v. U.S. Fidelity & Guar. Co.
    • United States
    • U.S. District Court — Southern District of Florida
    • June 15, 1999
    ...is required to establish lost profits. Wash-Bowl, Inc. v. Wroton, 432 So.2d 766 (Fla. 2d DCA 1983); A & P Bakery Supply & Equipment v. Hawatmeh, 388 So.2d 1071 (Fla. 3rd DCA 1980). In this case, rather than establish lost profits with any degree of certainty based upon a proven ability to r......
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