HCA Health Servs. of Fla., Inc. v. Cyberknife Ctr. of the Treasure Coast, LLC — June 2016 (Summary)

BREACH OF CONTRACT; DAMAGES

HCA Health Servs. of Fla., Inc. v. Cyberknife Ctr. of the Treasure Coast, LLC
No. 4D14-3199 (Fla. Dist. Ct. App. June 29, 2016)

The District Court of Appeal of Florida reversed and remanded a trial court’s decision to award a business damages in a breach of contract claim against a hospital.  The hospital and the business entered into an agreement in which the business would provide equipment to the hospital in exchange for a fee on a “per click” basis.  The hospital later terminated its agreement with the business because federal regulations under the Stark Law made “per click” agreements illegal. The business then sued for damages.  The trial court awarded damages for lost profits plus prejudgment interest and costs. The hospital argued that the consequential damages clause of the agreement barred the business from collecting damages by stating “in no event shall either party be entitled to consequential or punitive damages,” and that the business failed to prove its damages of lost profits.  The court determined that the business suffered general damages rather than the consequential damages referenced in the contract, but also noted that the business failed to prove its damages.  Florida law requires the business to prove damages of lost profits with specific evidence of expenses. At trial, the business only presented evidence of lost revenue, not lost profits.  Because there was no proof of the measure of damages, the court reversed and remanded in favor of the hospital.