Developing a theory of damages? Read the contract!

Description

Abstract: This article discusses a case in which a federal court allowed most of a damages expert’s testimony regarding lost profits, but wouldn’t allow the expert to testify regarding the “residual value” of the plaintiff’s business relationship with the defendant. That element of damages conflicted with the terms of the parties’ contract, which contained a nonassignment clause. This case illustrates why, when breach or wrongful termination of a contract is involved, it’s critical for lawyers and their damages experts to consider the contract’s provisions when developing their theory of damages. Citation: Allstate Sweeping, LLC v. City and County of Denver, 1:2010cv00290, Feb. 10, 2010 (Colorado District Court)