Opinion ID: 215200
Heading Depth: 3
Heading Rank: 2

Heading: Validsa’s Consequential Damages

Text: The district court granted defendants’ motion in limine to exclude evidence of Validsa’s consequential damages stemming from the alleged extra 20,369 tons of beef in contract 757. Validsa’s Amended Complaint did not plead this extra 20,369 tons of beef, nor did Validsa raise that argument in the summary judgment stage.17 The district court determined that contract 757 was for only 24,000 tons 17 Validsa argues that its claim regarding the 20,369 tons of beef was pled in its Amended Complaint because certain parts of the purchase order attached to the Amended Complaint state that the required quantity of beef was 44,369 tons (i.e., 24,000 plus 20,369). But these documents do not change the fact that Validsa pled that the contract was for only 24,000 tons, and never mentioned the 44,369 number in the body of its Amended Complaint. Moreover, in merely referencing 44,369 tons, the purchase order does not explain the significance of that number or its relationship to the 24,000 ton figure alleged in the complaint. 32 of beef. Because contract 757 did not obligate the parties to sell and buy these additional 20,369 tons of beef, Validsa’s claim necessarily was for consequential damages related to contract 757. The district court concluded that Florida law does not allow for the seller’s recovery of consequential damages, and denied Validsa’s attempt to recover these additional damages.18 On appeal, Validsa contends that the additional profits it seeks are not consequential in nature, and that even if they are, Florida law might allow the recovery of consequential damages. Consequential damages do not arise directly from the transaction between parties to a contract, “but rather stem from losses incurred by the non-breaching party in its dealings, often with third parties, which were a proximate result of the breach, and which were reasonably foreseeable by the breaching party at the time of contracting.” Hardwick Props., Inc. v. Newbern, 711 So. 2d 35, 40 (Fla. Dist. Ct. App. 1998). Given the determination that contract 757 was for 24,000 tons of beef, and the consistent pleading by Validsa, the district court did not err in concluding that any damages beyond those for 24,000 tons of beef were 18 The questions whether: (1) the damages Validsa seeks to recover are consequential damages and (2) Validsa, as a seller, can recover consequential damages under Florida law are legal questions which we review de novo. See St. Paul Fire & Marine Ins. Co. v. Lago Canyon, Inc., 561 F.3d 1181, 1186 n.10 (11th Cir. 2009) (stating we review legal questions de novo). 33 consequential damages. Thus, we must examine Florida law about consequential damages. We agree with the district court that Florida law does not allow for recovery of a seller’s consequential damages. In Florida Mining & Materials Corp. v. Standard Gypsum Corp., 550 So. 2d 47 (Fla. Dist. Ct. App. 1989), the Florida appellate court stated that, “While an aggrieved buyer may recover consequential damages for a seller’s breach of contract . . . , an aggrieved seller is limited to recovering lost profits and incidental damages as its remedy for a breach of contract.” Id. at 48. Validsa argues that we can ignore this ruling because the Florida Mining court “did not consider other provisions of the [U.C.C.]” and that we can disregard the Florida appellate court’s decision if “there is persuasive evidence that the highest state court would rule otherwise.” Pendergast v. Sprint Nextel Corp., 592 F.3d 1119, 1133 (11th Cir. 2010) (quotation marks omitted). The former statement is unpersuasive, and while the latter statement is a valid formulation of law, Validsa has not presented sufficient evidence to suggest that the Florida Supreme Court would rule that consequential damages are available to an aggrieved seller. Therefore, we affirm the district court’s ruling excluding evidence of Validsa’s alleged consequential damages related to the additional 20,369 tons of beef. 34