Proving lost profits with “reasonable certainty”

Description

Abstract: Recovering lost profits generally requires a plaintiff to establish three elements: causation, foreseeability and reasonable certainty. The meaning of the third element, “reasonable certainty,” can vary significantly depending on the particular case. This article looks at the distinctions courts make and notes some factors they consider in determining reasonable certainty, including whether the business is established or unestablished, and the relevance of management projections. A sidebar offers a case study. Inspectronic Corp. v. Gottlieb Skanska Inc., 2016 N.Y. Slip Op. 00155 (N.Y. App. Div. 1/13/2016)