In Cano, Inc. v. Judet, the Florida Fourth District Court of Appeal recently reaffirmed that when a contractor breaches a contract and the owner sues for breach of contract, the owner has three options for calculating its damages as follows:
- the owner may obtain the difference between the contract price and the additional money the owner spent to complete the project; or
- the owner can seek the difference between the value the construction would have had if completed and the value of the construction that had been performed before the contractor was terminated; or
- the owner can treat the contract as void and seek damages that will restore the owner to the position it was in before entering into the contract.
Courts refer to the first two options as the benefit-of-the-bargain remedy, which is intended to put the non-breaching party in the position it would have been in had the contract been completely performed.