Guidance on Proving Lost Profit Damages Offered By California Supreme Court

Proving lost profits through expert testimony is often key to recovering the full measure of damages in many lawsuits, but the California Supreme Court decision in Sargon Enterprises v. Univ. of Southern California (November 26, 2012) makes clear that expert testimony regarding lost profits may not succeed if it is too speculative in nature.

Sargon involved a dental implant company that contracted with the University of Southern California (“USC”) to do clinical trials for the company’s patented implant. Sargon alleged that USC failed to provide proper reports during the 5 year clinical trial as required by the contract. Sargon was awarded compensatory damages but the issue on appeal became Sargon’s right to recover lost profits and the evidence presented to support such, which suggested that Sargon would have become a worldwide leader in dental implants if the breach had not occurred.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Peter S. Bauman - Senior Commercial Litigation Attorney Callahan & Blaine, (714) 241-4444 (office) / (949) 842-1720 (mobile) | Attorney Advertising

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