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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