House of sand – “Speculative” lost profits damages crumble in court

Description

Abstract: Lost profits damages may seem straightforward. However, they’re anything but that when valuators must base their calculations on the projected profits of a new business. This article looks at one recent California case that illustrates how such a claim can crumble upon examination. The defendant won the case, but, as a result of its weak evidence to support its projected profits, saw its lost profits damages award severely slashed. A sidebar notes a similar fate regarding punitive damages.