Categorizing economic damages in commercial disputes is often straightforward. For example, if a grocery store is forced to close for a week because its HVAC unit was not properly serviced by a vendor, the typical measure of damages would be the profits lost while the store was closed. Alternatively, if a grocery store is forced to immediately and permanently shut its doors after a plumbing contractor causes a disastrous flood, the measure of damages would likely be the value of the grocery store business at the time of the flood.
But, what if our hypothetical grocery store suffers a commercial blow, struggles to recover for a year, and ultimately ceases operation? By way of example, what if the grocery store’s exterminator failed to detect a rodent infestation that is eventually remedied, but, the store simply cannot recover because its reputation is permanently sullied? Should the measure of damages be the profits the grocery store lost as a result of the infestation? Should it be the value of the business at the time it ceases to be a going concern? Or, should the measure of damages be a combination of both the value of the business and lost profits?
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