Calculating lost profits – Do post-breach conditions matter?

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Abstract: Recently, some breach of contract defendants have argued that poor market conditions subsequent to the alleged breach undermine plaintiffs’ claims for lost profits. This article looks at one lost-profits case in which the court didn’t agree, noting the “traditional rule” that lost profits damages are measured at the time of the breach. A sidebar discusses the distinction the court made in this case between direct lost profits and collateral lost profits.