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Lost Profits Available For Long-Term Contract Breach

Nov.28.2006

After finding that the government had breached by not honoring the exercise of a 50-year option by a lessee, the Court of Federal Claims in California Oregon Broadcasting, Inc. v. U.S. (Nov. 6, 2006, http://www.uscfc.uscourts.gov/Opinions/Firestone/06/FIRESTONE.COBI.110606.pdf) rebuffed the government's argument that lost profits were too speculative to recover. The court pointed out that the lessee had previously rented out the land and could make a factual showing to support profits from the leasehold into the future.

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Frederick (Rick) W. Claybrook Jr.
Partner – Washington, D.C.
Phone: +1 202.624.2695
Email: rclaybrook@crowell.com

J. Chris Haile
Partner – Washington, D.C.
Phone: +1 202.624.2898
Email: chaile@crowell.com