|
|
| ||
Demonstrating prospective lost profits for $3 million in damages. Often, legal counsel is reluctant to prosecute a case for lost prospective commercial damages where the Plaintiff has a short or non-existent track record. We handled such a prospective lost profits case for a former owner of a waste recycling company. Our client, the Plaintiff, and his former business partners had owned and operated two recycling and mulch companies for just a few short months. Needing financing to fully develop the companies' potential, they agreed to sell their companies to a national company, and entered into a Stock Purchase Agreement (SPA). The Agreement provided that the Plaintiff would benefit, and would manage the companies during a three-year earnout period. Plaintiff alleged that the purchasing company breached the third party beneficiary agreement, arguing that they failed to pay him deferred compensation or to allow him to manage the companies. The Defendants similarly alleged that the Plaintiff breached the terms, and/or made misrepresentations that induced the purchasing company into executing the Agreement. Plaintiff sued for the lost opportunities and profits that he would have received had the purchasing company not breached the SPA. His largest obstacle was proving his speculative damage claim, with little or no track record. At trial, we illustrated the existence and acceleration of the recycling and mulch markets, and presented testimony of a competitor that was engaged in the same business at the same time. This competitor's testimony established a "yardstick" by which the Jury was able to determine the damages. Plaintiff also testified about his ability to capture the market that was available, and further established his own damages. The Jury returned a verdict in the Plaintiff's favor for $3 million. | ||||
|
| ©2010 Katz, Barron, Squitero, Faust, Friedberg, Grady, English & Allen, P.A. All Rights Reserved. | Legal Disclaimer |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |