COVID-19 Has Broad Impact On Lost-Profit Determinations

Law360 (December 16, 2020, 4:45 PM EST) -- COVID-19 has caused a significant disruption to business operations around the world, which — as we have seen widely publicized — has the potential to result in a corresponding wave of litigation and arbitration involving claims for lost profits.

But what about claims for lost profits where the breach is related not to COVID-19, but other factors? In many jurisdictions, the claimant must be able to show that the amount of any loss can be estimated with reasonable certainty.

Even in normal times this can be difficult, but it is made significantly more challenging due to the pervasive effects of the...

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