A Florida court has ruled in favor of Devom, LLC, in a dispute with Bass Venture Corporation and Bass Management Group, LLC, regarding hotel signage. The case, Bass Venture Corporation and Bass Management Group, LLC v. Devom, LLC, was decided by the District Court of Appeal of Florida on July 8, 2022. The ruling affirms Devom's right to display signage on a shared monument and addresses the issue of lost profits due to Bass's actions.

The court's decision is significant as it clarifies the enforcement of easement rights in property disputes and sets a precedent regarding the evidence required to support claims for lost profits in business cases.

Background

The parties involved in this case are Bass Venture Corporation and Bass Management Group, LLC, which operate a hotel on one property, and Devom, LLC, which operates a competing hotel on an adjacent property. Both hotels share access to a main road, but only Bass's hotel is visible from that road. This visibility is crucial for attracting guests.

In 2018, Bass removed a shared monument that displayed signage for both hotels and replaced it with a new sign that only identified its hotel. Devom claimed that this action violated a recorded easement that granted it the right to maintain its own signage on the monument. Devom subsequently filed a lawsuit seeking a declaration of its easement rights, the replacement of the sign, and compensation for lost profits due to the sign's removal.

The Ruling

The court ruled that Devom had a valid easement to display its signage and that Bass violated this easement by removing the sign. As a result, the court allowed Devom to install a new sign at its own expense. However, the court reversed the trial court's award of $75,000 in lost profits to Devom, stating that the evidence presented was insufficient to support such an award.

The court noted, "Devom adduced evidence of only its revenues, without offering any evidence of its expenses or any discernable basis for its projections."

Judge Khouzam, along with Chief Judge Morris and Judge Atkinson, concurred in the decision. The court emphasized that to recover lost profits, a business must provide evidence of both revenues and expenses, which Devom failed to do.

Impact

This ruling has important implications for businesses seeking to claim lost profits in similar disputes. The court clarified that simply presenting revenue figures is not enough; businesses must also demonstrate their expenses to establish a clear picture of profitability. This requirement aims to prevent speculative claims and ensures that damages awarded are based on solid evidence.

By reversing the lost profits award, the court has set a precedent that reinforces the need for businesses to provide comprehensive financial documentation when pursuing such claims. This decision may influence future cases where lost profits are at stake, as businesses will need to prepare more thorough evidence to support their claims.

What's Next

Devom may seek to appeal the court's decision regarding the lost profits award. However, the court's ruling on the easement remains affirmed, allowing Devom to proceed with installing its new sign. Details were not available in the court filing regarding any related cases pending.