M Civ JI 142.32 Lost Profits

Damages for breach of contract may include lost profits. Loss of profits may be recovered for a breach of contract if,

(a) It is reasonably probable that the profits would have been earned except for the breach,

(b) The amount of loss can be shown with a reasonable degree of certainty, and

(c) There is a reliable basis in the evidence for computing the loss of profits.

Loss of profits is measured by net profits, not gross profits.

Note on Use

Lost profits are a type of benefit of the bargain damages.

Comment

Kolton v Nassar, 358 Mich 154 (1959); The Vogue v Shopping Centers, Inc, 402 Mich 546 (1978); Joerger v Gordon Food Serv, 224 Mich App 167 (1997); Fera v Village Plaza, 396 Mich 639 (1976); Getman v Mathews, 125 Mich App 245 (1983).

History

M Civ JI 142.32 was added March 2005.