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.
For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.