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Criteria for Recovery of Lost Profits for Breach of Contract Described

In finding the criteria were not met, the Second Department explained the proof necessary to recover lost profits in a breach of contract action:

“Lost profits may be recoverable for breach of a contract if it is demonstrated with certainty that such damages have been caused by the breach, and the alleged loss is capable of proof with reasonable certainty. There also must be a showing that the particular damages were fairly within the contemplation of the parties to the contract at the time the contract was made” … . While a plaintiff need not prove that its damages resulted “solely from [the defendant’s] breach of contract, to the exclusion of all other factors,” it must, at least, prove that the breach “contributed in substantial measure to its damages” … . Todd Rotwein DPM PC v Nader Enters LLC, 2015 NY Slip Op 01441, 2nd Dept 2-18-15

 

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