October 22, 2012 Articles

A Primer on Recovering Lost-Profit Damages

Careful attention to providing sufficient evidence and abiding by evidentiary rules could be the difference between recovering damages and having the claim barred.

By Zachary G. Newman and Anthony Ellis

Lost-profits-damage claims can arise in any manner of cases, including contract disputes, business torts, antitrust, and even insurance cases. As lost-profits claims often have the potential to significantly exceed conventional damage claims, litigants are well served to understand the unique evidentiary and theoretical challenges that are associated therewith. Although establishing lost profits may be as simple as calculating the anticipated profit on goods sold, other scenarios may present far more difficult calculations, even involving complex and potentially costly expert testimony and analysis.

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