How Florida’s Business Litigation Laws Differ from Other States

Business disputes can involve an extremely wide range of legal issues. As a result, when faced with the prospect of litigation, it is critical to have a clear and comprehensive understanding of the laws that apply. While Florida’s laws are similar to those of other states in many respects, there are some unique aspects to Florida’s laws as well. An experienced Miami business dispute attorney at Gonzalez Law Offices, P.A. explains.

5 Unique Aspects of Florida Law for Businesses Facing Litigation

Several laws that can play a central role in Florida business litigation have aspects that differentiate them from the laws in many other states. Here are five important examples:

1. Statutes of Limitations

Statutes of limitations vary widely between states. In Florida, the statutes of limitations for different types of claims also have an extremely wide range. Some of the most notable limitations periods for businesses facing litigation in Florida include:

• Breach-of-Contract Claims: 5 Years
• Construction Defect Claims: 4 Years
• Fraud Claims: 4 Years
• Statutory Liability Claims: 4 Years
• Negligence Claims: 2 Years
• Professional Malpractice Claims: 2 Years
• Claims for Specific Performance: 1 Year

These limitation periods (among others) are subject to various exceptions, and statutes of repose and other time bars apply to certain types of claims as well. As a result, before making any assumptions about whether a claim might be time-barred, it is imperative to consult with an experienced Miami business dispute attorney.

2. Contributory Fault/Joint and Several Liability  

In business litigation involving claims based on negligence, Florida’s comparative fault law can play a major role in apportioning liability between the parties involved. This law, which was amended in 2023, provides that the plaintiff in a negligence action is only entitled to recover damages if it is found to be 50 percent at fault or less in the matter at hand. If the plaintiff is found to be 50 percent at fault or less (but more than zero percent at fault), the plaintiff’s damages will be reduced based on its percentage of liability.

Florida’s joint and several liability law can play a major role in apportioning liability as well. In short, Florida law provides that joint and several liability does not apply. Instead, “the court shall enter judgment against each party liable on the basis of such party’s percentage of fault and not on the basis of the doctrine of joint and several liability.”

3. Florida’s “Blue Pencil” Rule

Florida is among the states that adhere to the “blue pencil” rule for resolving disputes that involve unenforceable contract provisions. This rule allows courts to modify the language of the parties’ contract—rather than simply setting it aside. This most often comes into play in disputes involving non-compete and non-solicitation clauses. However, it can play a role in other types of business contract disputes as well.

4. Enforcement of Non-Compete Clauses

While many states have recently imposed new limitations on the enforceability of non-compete clauses, Florida remains among the states that broadly promote enforcement of these types of provisions. Although limitations still apply (i.e., non-compete clauses cannot be unduly restrictive or overly broad), Florida courts will uphold the parties’ underlying agreement in most cases. As we just discussed, if a court finds a non-compete clause to be unenforceable, the court can modify the clause to make it enforceable rather than striking it entirely.

5. Mandatory Arbitration

Mandatory arbitration clauses are also generally enforceable under Florida law despite a trend toward non-enforcement (particularly in the employment context) in some other states. As a result, if your business has a contract that contains a mandatory arbitration clause—and if the contract is governed by Florida law—you will most likely need to begin preparing for arbitration instead of litigation. With that said, contractual exceptions may apply (i.e., when a party needs to seek emergency injunctive relief); so, here, too, a careful review by an experienced Miami business dispute attorney is necessary.

5 More Key Aspects of Florida’s Business Litigation Laws

While there are some unique aspects to Florida’s business litigation laws, many of the most fundamental aspects of the law are rooted in legal principles that apply in jurisdictions nationwide. These aspects of the law are equally important to keep in mind, as they will guide (or, at least, they should guide) litigants’ decision-making before, during, and after the litigation process. For example:

• Contracts Are Generally Enforceable – Absent special circumstances, Florida courts will generally uphold the terms of an arm’s length transaction. This is especially true in the commercial context.
• Businesses Can Pursue Various Statutory and Common Law Claims – Along with contract-based claims, businesses in Florida can pursue a variety of statutory and common law claims as well. These include claims for negligence, fraud, and fiduciary breaches, among others.
• Strict Requirements Apply to Court Filings – When asserting claims and defenses in court, litigants must meet strict substantive and procedural requirements. Failure to do so can lead to rejection or denial.
• Parties Must Accurately Present the Facts and the Law – In business litigation, all parties must accurately present the facts and the law. Failure to do so can trigger harsh sanctions that can directly impact the outcome of the litigation.
• Unsuccessful Litigants Have the Right to Appeal – If a party is dissatisfied with the outcome of business litigation in Florida, it has the right to appeal. As in other states, an appeal is not a “re-trial,” but instead an entirely different type of proceeding focused on errors at the trial level.

Again, these are just examples. Business litigation is complex, and to make informed and strategic decisions, business owners and executives need to have a clear and comprehensive understanding of how the law applies to the specific circumstances at hand.

Schedule a Call with a Miami Business Dispute Attorney at Gonzalez Law Offices, P.A.

Our attorneys represent businesses in all types of litigation in South Florida. If you would like to speak with an experienced Miami business dispute attorney at our offices in confidence, please call 305-676-6677 or request an appointment online today.