Tom Lam and Deborah Murphy Lam v. Modern Tampa Bay Homes, Inc.

Summary

The Florida Second District Court of Appeal held that Tom and Deborah Murphy Lam were the prevailing parties in arbitration arising from a construction contract dispute. Although the Lams recovered less than the full damages sought, they prevailed on the significant issue of contractual liability, so the trial court abused its discretion by declining to designate them as prevailing parties for purposes of attorneys’ fees and costs.

Holdings

1. The Lams were the prevailing parties because they prevailed on the significant issue of liability for breach of contract and achieved some of the benefit they sought, while Modern Tampa Bay Homes did not prevail on its competing breach claims.

Questions Presented

1. Whether the trial court abused its discretion by declining to designate the Lams as the prevailing parties for purposes of attorneys' fees and costs because they recovered substantially less than the damages they originally sought.
2. Whether a party that prevails entirely on contractual liability may be designated the prevailing party when the party recovers only a portion of the requested damages because consequential damages are contractually unavailable.

Disposition

reversed_and_remanded