Proving lost profits – Comparable comparables are critical

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Abstract: Establishing lost profits, particularly for new businesses that haven’t yet compiled any historical financial data, can be extremely challenging. In such cases, courts sometimes rely on data from comparable businesses. But as a recent New Jersey appellate court case illustrates, true comparability between the businesses is critical. A restaurateur who chose to testify on damages himself, drawing on his prior experience in the restaurant business, learned that his two businesses weren’t as comparable as he’d thought.