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Valparaiso Univ. Law School

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Wednesday, November 17, 2004

Cases—Damages—Lost profit claim too speculative

Florida_flag A Burger King franchisee lost on a claim that it was harmed by the nearby arrival of a Wendy’s.  The franchisee had bought land from Seller with a proviso that Seller would not sell land within 1,500 feet of the BK store to a competitor.  But Seller subsequently sold land to a Wendy’s franchisee only 655 feet away.

Seller plainly breached its covenant, said the Florida First District Court of Appeal in a per curiam opinion.  But dismissal of the franchisee’s claim was nevertheless appropriate because its damages evidence was too speculative.  In addition to the new competition, the store’s profits were affected by several other things, including road construction, national marketing problems, and the store’s own internal operating difficulties.

A. R. Holland, Inc. v. Wendco Corp., 2004 Fla. App. LEXIS 14432 (Fla. Civ. App. 1st Dist. Oct. 1, 2004).

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