Florida Courts Fix Repair Costs at Breach Date in Construction Defect Cases

For insurance claims professionals, understanding how damages are measured in construction defect cases is vital for accurate claim assessments and legal positioning. In Florida, that standard is clear: courts consistently hold that the cost to repair or replace construction defects must be measured as of the date of the breach—whether the case is rooted in contract, negligence, or building-code violations.

The article walks through a line of decisions starting with Grossman Holdings Ltd. v. Hourihan (1982) and including recent 2025 rulings like Vuletic Group v. Malkin, all affirming that the breach date is the proper benchmark for damages. These rulings reject arguments for later valuation dates based on latent defects or tort claims, emphasizing instead the importance of foreseeable loss and fairness in damage calculations.

This has significant implications for adjusters managing construction-related claims. It means damage estimates should not account for post-breach market fluctuations and must focus on costs foreseeable at the time of loss. Prejudgment interest may still compensate for the time lapse between breach and resolution, but not for increased repair costs due to inflation or discovery delay.

Florida’s model jury instructions and equitable exceptions further reinforce this principle, ensuring that owners are compensated fairly—but not excessively. Claims professionals should be aware that this rule applies regardless of the visibility of the defect or the legal cause of action and that valuation disputes will likely center on the breach date.