In short: In Comptech International v. Milam Commerce Park, 753 So. 2d 1219 (Fla. 1999), a tenant’s computers were damaged during a landlord’s renovation done without permits. The Florida Supreme Court held the economic loss rule could not bar the tenant’s claim under § 553.84, the statute allowing suits for building-code violations, and that the computers were “other property” recoverable in tort.
The Facts
Comptech leased warehouse space from Milam Commerce Park. The renewed lease required Milam to renovate and expand the space.
Comptech stored computers there during and after the work. Milam’s contractor did the renovation negligently and damaged the computers.
Milam had not obtained the required building permits for the addition.
Comptech sued for negligent selection of the contractor, negligent construction, violation of § 553.84, and return of rent it said was illegally collected.
The Third DCA held the negligence and statutory claims barred by the economic loss rule. The Florida Supreme Court took the case to resolve a conflict with the Fifth DCA.
The Decision
The Florida Supreme Court quashed the Third DCA decision (Nos. 93,336 and 93,126, Oct. 28, 1999), decided together with Kennedy Electric v. Stallings.
The judge-made economic loss rule cannot eliminate a cause of action the Legislature created. Section 553.84 applies “notwithstanding any other remedies,” so the building-code claim survives.
Separately, the computers were “other property,” not the subject of the contract, so tort recovery for their damage was not barred. Justice Wells, joined by two justices, urged limiting the rule to products cases.
The opinion does not mention a certificate of occupancy or a specific rent figure, and fraudulent inducement was not a claim in the case.
The Law
Current law (2026): Tiara Condominium Ass’n v. Marsh & McLennan (Fla. 2013) later limited the economic loss rule to products-liability cases, the result Justice Wells urged in Comptech.
Section 553.84 still provides a civil action for building-code violations, but it now includes a defense for permit applicants who obtained permits, had plans approved and passed inspections, unless they knew or should have known of a material violation. Chapter 558 adds a pre-suit notice process for construction-defect claims.
Lessons
- Landlords who renovate must pull permits. Unpermitted work creates statutory liability.
- Tenants damaged by a landlord’s construction may have both tort and statutory claims.
- Store valuable equipment elsewhere during construction, or get the risk allocated in writing.
- Video note: the title’s “no CO” and “$132K” details do not appear in the Supreme Court’s opinion.
Source: Opinion, Comptech Int’l, Inc. v. Milam Commerce Park, Ltd., 753 So. 2d 1219 (Fla. 1999)
Watch the Oral Argument
This is the recording of the Florida Supreme Court oral argument. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Landlord Built Without Permits, Tenant Sues | Comptech International v. Milam Commerce Park
Go Deeper
- Tenant Left Early, Landlord Held Out for Higher Rent: Mitigation Under § 83.595 (Lieber v. Miller)
- Five Days, Not Fifteen: The Eviction Rehearing Trap (Fisher v. Housing Authority of Key West)
- Splitting Rent Between the Bank and the Condo: No Fee Deduction (Ocean Bank v. 107 Avenue)
Frequently Asked Questions
Can a tenant sue a landlord for building code violations in Florida?
Yes. Section 553.84 creates a civil action for damages caused by building-code violations, and Comptech held the economic loss rule does not bar it.
What is the economic loss rule in Florida today?
Since Tiara Condominium (2013), it applies only in products-liability cases.
Does a landlord need permits to renovate leased space?
Yes, where the building code requires them. Unpermitted work can expose the landlord to liability.
Is there a notice requirement before suing over construction defects?
Chapter 558 requires pre-suit notice for many construction-defect claims.
Talk to a Florida real estate litigation lawyer
Weidner Law, P.A. handles Florida real estate, landlord-tenant, condominium and property disputes from St. Petersburg. If you need a real estate litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: the full Florida Statutes and court rules are on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
