Tort or Contract? Understanding Potential Claims in Florida Commercial Litigation

Companies can have both tort claims and contract-based claims in commercial litigation. For companies facing complex disputes, identifying all potential claims and defenses is a key first step in making strategic decisions. If your company faces a complex dispute in South Florida, a Miami commercial litigation attorney at Gonzalez Law Offices, P.A. can help you understand your options and develop a strategy to move forward.

Commercial litigation claims broadly fall into two categories: tort claims and contract claims. Tort and contract claims differ in key respects, and while some overlap exists, it is not unusual for companies to have completely separate tort- and contract-based causes of action.

As a result, companies facing complex commercial disputes in South Florida must identify all potential claims and defenses for strategic decision-making. This involves working with an experienced Miami commercial litigation attorney who can comprehensively assess the dispute and advise on the causes of action available under Florida law.

What Are Some Common Contract Claims in Commercial Litigation?

Contract claims in commercial litigation can take many different forms. In short, any significant (or “material”) breach of a commercial contract can potentially warrant litigation or alternative dispute resolution (ADR). With this in mind, some examples of common contract claims include:

• Missed Payments – Payment disputes are among the most common triggers for commercial disputes in South Florida.
• Failure to Perform – Along with failure to pay, failure to perform is also a common cause of action.
• Deficient Performance – If a party’s performance is deficient, that party can still face contractual liability even if it did not fail to perform entirely.
• Breach of Representations and Warranties – When breaches of representations and warranties lead to commercial losses, these can also warrant litigation or ADR.
• Breach of Confidentiality – Breaches of confidentiality can lead to immediate and potentially irreparable harm. As a result, prompt legal action will often be necessary.
• Violations of Non–Competition and Non-Solicitation Covenants – Prompt legal action may also be necessary to protect companies’ interests following violations of non-competition and non-solicitation covenants.
• Anticipatory Repudiation – While companies are typically limited to taking legal action after a breach, anticipatory repudiation can provide grounds to seek relief proactively in appropriate cases.

Again, these are just examples. From failing to meet SLAs to failing to indemnify, breach-of-contract claims can also involve a wide range of other issues. Commercial contract disputes are often highly fact-specific, and the parties’ contract terms ultimately determine which claims are available.

What Are Some Common Tort Claims in Commercial Litigation?

Tort claims in commercial contract litigation can take many forms. Some examples of common tort claims include:

• Breach of Fiduciary Duty – Business owners, directors, and other insiders can be held liable for breaching their fiduciary duties (including the duty of loyalty and duty of care) under Florida law.
• Civil Theft – Florida’s civil theft statute may apply in certain commercial disputes and can provide for treble damages and attorneys’ fees in some cases.
• Fraud and Misrepresentation – Fraud and misrepresentation claims can arise in a wide range of contexts and involve a wide range of types of business and commercial relationships.
• Intellectual Property Infringement – Copyright, patent, and trademark infringement claims are tort-based and can be filed under state or federal law, depending on the circumstances.
• Trade Secret Misappropriation – The Florida Uniform Trade Secrets Act (FUTSA) creates a statutory cause of action for misappropriating information that qualifies as a “trade secret.”
• Tortious Interference – Tortious interference claims can involve interference with both contractual and non-contractual business relationships.
• Unfair Competition and Deceptive Trade Practices – The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) also establishes a statutory tort-based cause of action that can apply in various circumstances.

This is just a small sample. Tort-based claims can take many other forms. Again, when evaluating whether to pursue (or defend against) litigation or ADR, business owners and executives must ensure they have a comprehensive understanding of the claims and defenses at play.

FAQs: Preparing for Commercial Litigation in South Florida

What is a tort?

A tort is a “civil wrong” that causes monetary losses or other harm to another party. While many commercial disputes involve contract-based claims for damages, companies involved in complex commercial disputes may also have tort-based claims.

What are the remedies for commercial torts in Florida?

The remedies available in commercial tort cases depend on the specific circumstances. Potential remedies generally include monetary damages, injunctive relief, and other equitable remedies. When necessary, companies can hire a Miami commercial litigation attorney to seek emergency temporary injunctive relief.

Can companies pursue tort claims and breach-of-contract claims in the same lawsuit in Florida?

Yes, companies can (and frequently do) pursue both tort claims and breach-of-contract claims in lawsuits filed against vendors, contractors, customers, and other parties. While companies generally cannot recover more than their actual losses (though some exceptions apply), filing all viable claims can both help maximize companies’ chances of success and help provide maximum leverage in settlement negotiations.

How Our Law Firm Can Help

If you have questions about your company’s options for pursuing legal action in South Florida, our law firm can provide the advice and insights you need to make strategic decisions. We have extensive experience representing clients in numerous forms of complex commercial litigation and ADR. We can help you decide whether legal action is warranted; if so, we can get to work immediately.

Schedule a Call with a Miami Commercial Litigation Attorney at Gonzalez Law Offices, P.A.

To schedule a call with a Miami commercial litigation attorney at Gonzalez Law Offices, P.A., contact us today. Call us at 305-676-667 or tell us how we can reach you online now.