Construction site. Photo: Diego M. Radzinschi/ALM In Legal Malpractice Case, Appeals Court Upholds Curb on Damages for Novice Businesses
The ruling illustrates a potential pitfall facing a startup company that tries to recover lost profits in litigation. The new-business rule says that "prospective profits of a new business are considered too remote and speculative to meet the legal standard of reasonable certainty."
November 06, 2020 at 05:12 PM
4 minute read
A legal malpractice suit brought by a neophyte real estate developer was correctly thrown out, based on a rule that restricts claims for lost profits by a new business, a New Jersey appeals court has ruled.
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