Commercial Damages-Lost Profits

The calculation of damages in commercial litigation is generally based on lost profits. The purpose of a lost profits calculation is to place the damaged party in the same financial position or condition it would have been but for the other party’s wrongful action to the extent allowed by law.

In order to be successful in lost profits litigation, the wronged party (plaintiff) must prove:

  • Proximate Cause- The other party’s( defendant) wrongful acts are what caused the damages.
  • Reasonable Certainty- Lost profits can be calculated within reason using reliable methods.
  • Foreseeability- Damages were a foreseeable consequence of the other party’s ( defendant) conduct.
  • Mitigation- All reasonable efforts were made by the wronged party (plaintiff) to minimize the resulting damages.

Commercial damage litigation requires the unbiased knowledge and experience of Forensic accounting professionals who understand the theories and methods required to prove lost profits and then present reliable expert testimony to the Trier of Fact (Court).

Should you need business valuation assistance or have questions, please call one of our credentialed professionals at (615) 822-8342 or contact us via email.