Legal Principles of Lost profits

Описание: New Jersey forensic accountant Robert A. Bonavito discusses the legal principles of lost profits.

➡️ When forensic accountants prepare damage reports or lost profit reports, they can normally assume that there is a strong legal principle that will back up these damages.

📌 In order for damage reports to be successful, the attorney must win on legal issues.
📌 It is important as a forensic accountant to have some background for understanding of legal principles in lost profit cases, as you cannot always assume the attorney has fully researched the applicable laws.

➡️ The principle behind lost profits is fundamentally compensatory: the defendant’s wrongful actions caused the plaintiff to lose profits that the plaintiff otherwise would have earned. The result of an award of the damages will make the plaintiff whole.

➡️ Two Types of Damages:
📌 Direct or General Damages result from a breach, the plaintiff is seeking general damages to recover the value of a performed promise.
📌 Consequential or Special Damages seek to compensate the plaintiff for additional losses that are the result of defendant’s breach.

➡️ To Prove Lost Damages the Following Must be Shown:
1. Existence of lost profits
2. Proximate cause of lost profits
3. Foreseeability
4. Amount of lost profits
5. Mitigation of damages

👉 For more information, visit our website: https://www.rabcpafirm.com/practices/...

👉 Contact for Questions:
Robert A. Bonavito, CPA
1812 Front St.
Scotch Plains, NJ 07076
908-322-7719