The Economic Waste Doctrine: Limiting Damages in Florida Construction Defect Cases
When construction defects occur, courts must decide how to calculate damages. Florida courts apply the Economic Waste Doctrine, which prevents awarding repair costs that far exceed the value gained .
How Damages Are Calculated
Florida law provides two methods for construction defect damages :
- Cost of Repair – If fixing defects is reasonable.
- Diminished Value – If repairs require tearing down/rebuilding, causing economic waste.
Courts avoid requiring destruction of a finished structure unless absolutely necessary.
Case Law Examples
- Courts refused excessive repair damages when rebuilding would cost more than the property’s final value.
- When no economic waste exists, the cost to remedy defects is awarded instead.
Why It Matters for Contractors & Owners
- Owners may recover only reasonable damages.
- Contractors can use the doctrine as a defense against inflated claims.
The Economic Waste Doctrine ensures fairness in construction disputes by preventing excessive repair costs that exceed the property’s value. More on Florida lien law here.
FAQs About Economic Waste Doctrine in Florida
1. What is the Economic Waste Doctrine?
It limits damages to diminished value when repair costs are unreasonable.
2. When does it apply in construction cases?
When repairs require tearing down/rebuilding at impractical cost.
3. Can homeowners demand full repair costs?
Not if courts find it would result in economic waste.
4. Who benefits from this doctrine?
Contractors defending against excessive damage claims.
5. What damages are usually awarded?
Either repair costs (if reasonable) or diminished value of the property.