24 HR AIR SERVICE, INC. v. HOSANNA COMMUNITY BAPTIST CHURCH, INC. ( 2021 )


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  •       Third District Court of Appeal
    State of Florida
    Opinion filed June 9, 2021.
    Not final until disposition of timely filed motion for rehearing.
    ________________
    No. 3D21-61
    Lower Tribunal Nos. 16-20107 CC and 19-264AP
    ________________
    24 Hr Air Service, Inc.,
    Appellant,
    vs.
    Hosanna Community Baptist Church, Inc.,
    Appellee.
    An Appeal from the County Court for Miami-Dade County, Christina
    Marie DiRaimondo, Judge.
    Law Office of Alexander Alvarez, and Alexander Alvarez and Anamari
    C. Del Rio, for appellant.
    Pierre Simon, and Faudlin Pierre (Fort Lauderdale), for appellee.
    Before LOGUE, LINDSEY, and GORDO, JJ.
    LOGUE, J.
    24 Hr Air Service, Inc. (“Contractor”), appeals from the county court’s
    entry of final judgment in favor of Hosanna Community Baptist Church, Inc.
    following a bench trial. We affirm the county court’s judgment that the
    Contractor anticipatorily breached the service agreement between the
    parties. However, we reverse the damage award because the court applied
    an improper measure of damages by awarding the Church the cost for
    installation of a new air conditioning unit, rather than the cost of repairing the
    existing unit as contemplated by the parties in the service agreement.
    This dispute arises from a service contract between the parties
    involving repairs to a smoke detector and air conditioning unit. The
    Contractor, a licensed air conditioning company, agreed to repair the smoke
    detector and AC unit in the Church’s building. The Church agreed to pay
    $765.00 for the smoke detector repair and $922.30 for the AC unit repair.
    After the Contractor’s employees entered the church’s attic to start the
    repairs, they realized that the wooden platform they were standing on was
    caving in and ran before part of the ceiling collapsed. After the ceiling
    structure was repaired by the Church, the Contractor refused to return and
    complete the agreed repairs to the smoke detector and AC unit for safety
    reasons. The Church sued the Contractor for refusing to complete the
    agreed repairs.
    2
    At the bench trial, Reverend Charles Dinkins testified on behalf of the
    Church. He confirmed that the Church had contacted the Contractor to repair
    the smoke detector and AC unit, that the repairs were never completed, and
    that the Church was willing and able to pay the agreed upon price after
    completion of the repairs.
    Reverend Dinkins also testified regarding the amounts paid by the
    Church to complete the repairs to the smoke detector ($1,400.00) and the
    AC unit ($9,998.00). His testimony also revealed that the repair cost for the
    smoke detector was absorbed in the Church’s annual security bill.
    Additionally, the repair cost for the AC unit included inspections from two
    service companies that suggested replacement of the AC unit.
    Michael Dunn, corporate representative of the Contractor, testified that
    the Contractor refused to go back to perform the agreed repairs “because of
    safety reasons,” and that he had requested proof of the ceiling repairs from
    the Church, which were never provided.1
    1 We note the trial court’s findings of fact incorrectly states the Contractor
    “never requested . . . proof that the ceiling was repaired in a workmanlike
    condition.” This fact, however, is undisputed as evidenced by Mr. Dunn’s
    testimony at trial:
    QUESTION:         And then the Church contacts you to repair, to come
    back and complete the job, correct?
    ANSWER:           Yes.
    QUESTION:         And you said you wanted information that the ceiling
    was conformed to workman-like, correct?
    3
    The trial court entered final judgment in favor of the Church and
    awarded damages totaling $9,710.70 based on the difference between the
    agreed cost of repairs and the cost to complete the repairs paid by the
    Church. The Contractor now appeals.
    a.   Anticipatory Breach
    “In reviewing a final judgment rendered from a non-jury trial, the trial
    court’s findings of fact are clothed with a presumption of correctness. We
    apply a clear error standard to the findings of fact, and a finding will not be
    disturbed unless it is totally unsupported by competent and substantial
    evidence, it is clearly against the weight of the evidence, or it was induced
    by an erroneous view of the law.” La Ley Sports Complex at the City of
    Homestead, LLC v. City of Homestead, 
    255 So. 3d 468
    , 469 (Fla. 3d DCA
    2018) (citations omitted). Moreover, the final judgment may be affirmed for
    reasons other than those articulated by the trial court. See Dade Cnty. Sch.
    Bd. v. Radio Station WQBA, 
    731 So. 2d 638
    , 644–45 (Fla. 1999) (explaining
    under “tipsy coachman” rule, when a trial court reaches the right result but
    ANSWER:           Yes.
    *     *    *
    QUESTION:         Did you request the church to provide you with proof
    that the repairs had been done?
    ANSWER:           Yes.
    QUESTION:         And did they provide that?
    ANSWER:           No.
    4
    for the wrong reasons, an appellate court may uphold the result if there is
    any basis to support the judgment in the record).
    There is competent substantial evidence in the record to support a
    claim for anticipatory breach against the Contractor. “A prospective breach
    of contract occurs when there is absolute repudiation by one of the parties
    prior to the time when his performance is due under the terms of the contract.
    Such a repudiation may be evidenced by words or voluntary acts but the
    refusal must be distinct, unequivocal, and absolute.” Mori v. Matsushita Elec.
    Corp. of America, 
    380 So. 2d 461
    , 463 (Fla. 3d DCA 1980). Moreover,
    repudiation can be shown where one party makes additional demands not
    included in the initial agreement:
    The law is clear that where one party to the contract arbitrarily
    demands performance not required by the contract and couples
    this demand with a refusal to further perform unless the demand
    is met, the party has anticipatorily repudiated the contract, which
    anticipatory repudiation relieves the non-breaching party of its
    duty to further perform and creates in it an immediate cause of
    action for breach of contract.
    Twenty-Four Collection, Inc. v. M. Weinbaum Constr., Inc., 
    427 So. 2d 1110
    ,
    1111 (Fla. 3d DCA 1983) (internal citations omitted).
    The Contractor’s request that the Church provide safety assurances of
    the ceiling repairs constitutes an additional demand that was not agreed to
    5
    by the parties under the service contract.2 Despite the Contractor’s argument
    that it never abandoned the job, its demand for safety assurances coupled
    with its refusal to complete the agreed repairs until such assurances were
    provided was an anticipatory breach of the contract. See 
    id.
     at 1111–12 (“A
    requirement of actual breach as a prerequisite for anticipatory breach would
    totally nullify the doctrine of anticipatory breach.”).
    Therefore, the trial court correctly entered final judgment for the Church
    on its claim for anticipatory breach as there is competent substantial
    evidence to support the judgment.
    b.   Damages
    “A trial court’s determination as to the method of calculating damages
    is reviewed de novo.” HCA Health Servs. of Fla., Inc. v. CyberKnife Ctr. of
    Treasure Coast, LLC, 
    204 So. 3d 469
    , 471 (Fla. 4th DCA 2016) (emphasis
    in original) (citing Katz Deli of Aventura, Inc. v. Waterways Plaza, LLC, 
    183 So. 3d 374
    , 380 (Fla. 3d DCA 2013)). “There must be some reasonable basis
    in the evidence to support the amount of damages awarded. Furthermore, it
    is incumbent upon the party seeking damages to present evidence to justify
    2 Mr. Dunn confirmed that on the three occasions that the Contractor’s
    employees, including himself, went up to the Church’s attic before the ceiling
    collapsed, nobody asked for information regarding the safety of the ceiling’s
    structure.
    6
    an award of damages in a definite amount.” Tubby’s Customs, Inc. v. Euler,
    
    225 So. 3d 405
    , 407 (Fla. 2d DCA 2017) (citations and alterations omitted).
    “When there is a total breach of contract, the nonbreaching party may
    affirm the contract, insist upon the benefit of his bargain, and seek damages
    that would place him in the position he would have been in had the contract
    been completely performed.” 
    Id.
     (citations omitted). “Under this benefit-of-
    the-bargain theory, ‘the proper measure of damages would be either the
    reasonable cost of completion, or the difference between the value the repair
    would have had if completed and the value of the repair that has been thus
    far performed.’” 
    Id.
     (quoting Rector v. Larson’s Marine, Inc., 
    479 So. 2d 783
    ,
    785 (Fla. 2d DCA 1985)).
    The trial court awarded the Church $9,710.70 in damages3 “to place it
    in the position it would have been in had the contract been completely
    performed without any deficiency in said performance.” To reach this figure,
    the trial court calculated the difference between the agreed repair cost and
    the cost of completion paid by the Church. The trial court did not further
    elaborate on its damage calculation.
    3The damage award includes $635.00 for repair of the smoke detector and
    $9,075.70 for repair of the AC unit. The record shows the AC unit repairs
    paid by the Church were broken down between various invoices for
    diagnostic and repairs totaling $2,600.00, and for installation of a new AC
    unit including permits and fees totaling $7,398.00.
    7
    The Contractor argues that the damage award is outside the scope of
    the contract because the Church was put in a better position than that for
    which it had bargained for regarding the minor repairs. Specifically, it asserts
    the Church was awarded a brand-new AC unit and a year of service for its
    entire smoke detecting system. In support of its argument, the Contractor
    cites Campbell v. Rawls, 
    381 So. 2d 744
     (Fla. 1st DCA 1980), in which the
    damages awarded to buyers in a breach of contract action based upon a
    warranty was limited to the repairs necessary to place an existing air-
    conditioning system in working condition. Although the contract in Campbell
    included a warranty, the same analogy can be applied to the facts of this
    case.
    The record shows that the parties agreed to the repair of the smoke
    detector and AC unit integration that had been incorrectly installed by a
    different service company, which ultimately caused the AC unit to
    malfunction. As evidenced by the service agreements, the parties agreed on
    $765.00 for the smoke detector repair and $922.30 for the AC unit repair,
    totaling $1,687.73 in repair costs. The trial court, however, awarded the
    Church $635.00 for the smoke detector and $9,075.70 for the AC unit, for a
    damages award totaling $9,710.70—a roughly $8,000 difference over the
    agreed cost of repair in the service agreement.
    8
    We hold the Church was entitled to damages measured by the cost of
    repairing the existing AC unit, rather than by the cost of installation of a new
    system. Campbell, 
    381 So. 2d at 746
     (holding that “damages recoverable by
    [plaintiffs] must be limited to the repairs necessary to place the existing
    system in working condition”). In a breach of contract action, “the purpose of
    compensation is to restore the injured party to the condition which he would
    have been in had the contract been performed.” 
    Id.
     (noting “damages which
    are the natural and proximate result of the breach are recoverable”).
    Therefore, the Church “can neither receive more than [it] bargained for nor
    be put in a better position than [it] would have been had the contract been
    performed.” 
    Id.
    Based on the record evidence, the Church paid far more than to repair
    the existing AC unit. In addition to basic repairs, presumably to the existing
    AC unit, totaling $2,600.00, the Church ultimately paid over $7,000 for
    installation of a new AC unit with permits and fees, which should not be
    assumed by the Contractor. See, e.g., Taylor v. Lee, 
    884 So. 2d 222
    , 224
    (Fla. 2d DCA 2004) (holding trial court erred in awarding an amount of
    damages that included costs and expenses outside the scope of the
    breached contract); Koplowitz v. Girard, 
    658 So. 2d 1183
    , 1184–85 (Fla. 4th
    9
    DCA 1995) (reversing and remanding for recalculation of damages where
    buyer “impermissibly received more than its bargain”).
    Accordingly, we affirm the final judgment entered against the
    Contractor, but reverse and remand for recalculation of damages consistent
    with this opinion.
    Affirmed, in part; reversed, in part, and remanded for further
    proceedings.
    10