Court’s Majority Says Expert’s Reliance on Management Projections Was Unreasonable

BVLaw
Court Case Digests
December 20, 2018

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economic damages & lost profits
damages, lost profits, breach of contract, expert testimony, causation, discount, projections, lost business value
Cargotec Corp. v. Logan Industries
2018 Tex. App. LEXIS 10621
US
State Court
Texas
Court of Appeals
Robert Hancock (plaintiff); unknown (defendant)
Wise

Summary

Appeals court majority strikes down lost profits and diminished business value awards, finding plaintiff failed to show causation and its damages expert based his calculations on management’s business plan without substantiating the plan’s underlying (unreasonable) gross profit goals.

See Also

Cargotec Corp. v. Logan Industries

Full Text of Court Cases
December 20, 2018

Appeals court majority strikes down lost profits and diminished business value awards, finding plaintiff failed to show causation and its damages expert based his calculations on management’s business plan without substantiating the plan’s underlying (unreasonable) gross profit goals.

This article also appears in:
The Comprehensive Guide to Economic Damages, Seventh Edition