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Grossman Holdings Ltd. v. Hourihan

Florida Supreme Court

414 So. 2d 1037 (1982)

Relevant factsFree

The Hourihans (plaintiffs) contracted with Grossman Holdings (defendant) to build a house matching a model home, oriented to capture prevailing winds and views. Grossman instead built a mirror image, blocking the wind and giving a highway view instead. The trial court found breach but declined to award rebuilding costs, reasoning that would be economic waste given the house's value had actually risen above the contract price; the court of appeal reversed, holding damages should be the cost to rebuild to specification.

IssueFree

Whether the economic-waste doctrine, capping damages at diminished value rather than reconstruction cost, applies to residential as well as nonresidential structures.

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