Question: Eliza opened a new book store. It had been open only two months when there was a fire that destroyed the building and all Eliza's
Eliza opened a new book store. It had been open only two months when there was a fire that destroyed the building and all Eliza's inventory. Eliza sued the commercial landlord, who was found to be responsible for the fire.
Eliza did not have reliable budgets or forecasts. The first two months were not profitable, because of a lot of nonrecurring start up expenses..
Which approach would be most appropriate to determine his lost profits?
Yardstick or benchmark approaches comparing Eliza's store to other businesses just like hers.
A "before and after" approach relying on the two startup months' data.
Eliza's damages can not be calculated because there is no way to establish damages with insufficient sales and cost history.
A disgorgement approach based on the landlord's profits.
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