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Monday, November 22, 2004

Cases—Damages—True value of property at time of sale is damage measure for fraud in inducement

Florida_flag Where the purchaser of rental property raises a claim of fraud in the inducement, the measure of damages is the difference between the inflated and the actual value of the property on the date of the sale, says the Florida District Court of Appeal.

The buyer had purchased property on the false representation that it was fully leased and that the leases had two years to run. When the major tenant moved out, the buyer sued for the lost value of the rent. But this was the wrong measure of damages, said the court. The buyer was required to introduce evidence of the true value of the property on the sale date; it failed to do so, and its claim for lost rent had to be dismissed

The buyer was doubly out of luck because it apparently failed to plead breach of contract, and its attempt to amend its contract in the middle of the trial was property denied.

Kind v. Gittman

, 2004 Fla. App. LEXIS 17054 (4th Dist. Nov. 10, 2004)

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