The CAFC issued an interesting opinion which touched on some issues that arise in lost profit matters. The case provides a good meta-analysis of the lost profits damages requirements and summarizes where the case law on lost profits damages stands.
An important consideration in any lost profits analysis is an actual demonstration of causality; specifically, “reliable economic evidence of but for causation.” The opinion states:
The opinion also identifies the Panduit test as a “useful but non-exclusive” method to derive lost profits. The discussion in this matter is echoed by Calico Brands.