{"id":1940,"date":"2021-10-25T03:55:14","date_gmt":"2021-10-25T03:55:14","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1940"},"modified":"2022-05-09T18:08:19","modified_gmt":"2022-05-09T18:08:19","slug":"caci-3903n-lost-profits-economic-damage","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3903n-lost-profits-economic-damage\/","title":{"rendered":"CACI 3903N Lost Profits (Economic Damage)"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2657q1-cdf725cc60ad2ed7027cffa3c157e7f4\">\n#top .av-special-heading.av-kv2657q1-cdf725cc60ad2ed7027cffa3c157e7f4{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv2657q1-cdf725cc60ad2ed7027cffa3c157e7f4 .av-special-heading-tag 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itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv266gjv-742c040185d6dac7b41f79d96c77e3ea\">\n#top .av_textblock_section.av-kv266gjv-742c040185d6dac7b41f79d96c77e3ea .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv266gjv-742c040185d6dac7b41f79d96c77e3ea '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3903N\u00a0Lost Profits (Economic Damage)<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Insert number, e.g.<\/span>, \u201c13.\u201d<span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] Lost profits.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">To recover damages for lost profits, [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] must prove it is reasonably certain [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/it] would have earned profits but for [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s conduct.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">To decide the amount of damages for lost profits, you must determine the gross amount [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] would have received but for [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s conduct and then subtract from that amount the expenses [including the value of the [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">specify categories of evidence, such as labor\/materials\/rents\/all expenses\/interest of the capital employed<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]] [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] would have had if [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s conduct had not occurred.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The amount of the lost profits need not be calculated with mathematical precision, but there must be a reasonable basis for computing the loss. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New September 2003 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>This instruction is not intended for personal injury cases. Instead, use\u00a0CACI No.\u20023903C,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Past and Future Lost Earnings (Economic Damage)<\/span>. (See\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Pretzer v. California Transit Co.<\/span>\u00a0(1930) 211 Cal. 202, 207\u2013208 [294 P. 382].)<\/p>\n<p>Insertion of specified types of costs to be deducted from gross earnings is optional, depending on the facts of the case. Other types of costs may be inserted as appropriate. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe measure of damages in this state for the commission of a tort, as provided by statute, is that amount which will compensate the plaintiff for all detriment sustained by him as the proximate result of the defendant\u2019s wrong, regardless of whether or not such detriment could have been anticipated by the defendant. It is well established in California, moreover, that such damages may include loss of anticipated profits where an established business has been injured.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fibreboard Paper Products Corp. v. East Bay Union of Machinists, Local 1304, United Steelworkers of America, AFL-CIO<\/span>\u00a0(1964) 227 Cal.App.2d 675, 702 [39 Cal.Rptr. 64], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn business cases, damages are based on net profits, as opposed to gross revenue.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Meister v. Mensinger<\/span>\u00a0(2014) 230 Cal.App.4th 381, 397 [178 Cal.Rptr.3d 604].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018Lost profits, if recoverable, are more commonly special rather than general damages\u2009\u2026\u2009, and subject to various limitations. Not only must such damages be pled with particularity [citation], but they must also be proven to be certain both as to their occurrence and their extent, albeit not with \u201cmathematical precision.\u201d\u2009\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Greenwich S.F., LLC v. Wong<\/span>\u00a0(2010) 190 Cal.App.4th 739, 754 [118 Cal.Rptr.3d 531].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018[T]he general principle [is] that damages for the loss of prospective profits are recoverable where the evidence makes reasonably certain their occurrence and extent.\u2019 Such damages must \u2018be proven to be certain both as to their occurrence and their extent, albeit not with \u2018mathematical precision.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Sargon Enterprises, Inc. v. University of Southern California<\/span>\u00a0(2012) 55 Cal.4th 747, 773\u2013774 [149 Cal.Rptr.3d 614, 288 P.3d 1237]), internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is for the jury to determine the probabilities as to whether damages are reasonably certain to occur in any particular case.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Asahi Kasei Pharma Corp. v. Actelion Ltd.<\/span>\u00a0(2013) 222 Cal.App.4th 945, 972 [166 Cal.Rptr.3d 134].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is enough to demonstrate a reasonable probability that profits would have been earned except for the defendant\u2019s conduct. The plaintiff has the burden to produce the best evidence available in the circumstances to attempt to establish a claim for loss of profits.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">S. C. Anderson, Inc. v. Bank of America N.T. &amp; S.A.<\/span>\u00a0(1994) 24 Cal.App.4th 529, 536 [30 Cal.Rptr.2d 286], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cHistorical data, such as past business volume, supply an acceptable basis for ascertaining lost future profits. [Citations.] In some instances, lost profits may be recovered where plaintiff introduces evidence of the profits lost by similar businesses operating under similar conditions. [Citations.]\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Sargon Enterprises, Inc.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra,<\/span>\u00a055 Cal.4th at p. 773.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cRegarding lost business profits, the cases have generally distinguished between established and unestablished businesses. \u2018[W]here the operation of an established business is prevented or interrupted, as by a \u2026 breach of contract\u2009\u2026\u2009, damages for the loss of prospective profits that otherwise might have been made from its operation are generally recoverable for the reason that their occurrence and extent may be ascertained with reasonable certainty from the past volume of business and other provable data relevant to the probable future sales.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Sargon Enterprises, Inc.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra,<\/span>\u00a055 Cal.4th at p. 774.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he lost profit inquiry is always speculative to some degree. Inevitably, there will always be an element of uncertainty. Courts must not be too quick to exclude expert evidence as speculative merely because the expert cannot say with absolute certainty what the profits would have been. Courts must not eviscerate the possibility of recovering lost profits by too broadly defining what is too speculative. A reasonable certainty only is required, not absolute certainty.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Orozco v. WPV San Jose, LLC<\/span>\u00a0(2019) 36 Cal.App.5th 375, 397\u2013398 [248 Cal.Rptr.3d 623].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018On the other hand, where the operation of an unestablished business is prevented or interrupted, damages for prospective profits that might otherwise have been made from its operation are not recoverable for the reason that their occurrence is uncertain, contingent and speculative. [Citations.] \u2026 But although generally objectionable for the reason that their estimation is conjectural and speculative, anticipated profits dependent upon future events are allowed where their nature and occurrence can be shown by evidence of reasonable reliability.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Sargon Enterprises, Inc.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra,<\/span>\u00a055 Cal.4th at p. 774.)<\/span><\/p>\n<p>\u201c[I]f the business is \u2026 new \u2026 or \u2026 speculative\u2009\u2026\u2009, damages may be established with reasonable certainty with the aid of expert testimony, economic and financial data, market surveys and analyses, business records of similar enterprises, and the like.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Meister<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra,<\/span>\u00a0230 Cal.App.4th at p. 397.)<\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn some instances, lost profits may be recovered where plaintiff introduces evidence of the profits lost by similar businesses operating under similar conditions. In either case, recovery is limited to net profits.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Berge v. International Harvester Co.<\/span>\u00a0(1983) 142 Cal.App.3d 152, 161\u2013162 [190 Cal.Rptr. 815], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cEven in cases of unestablished businesses, while a plaintiff may base its lost profits on the experience of comparable businesses, there is no requirement that it must do so.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Orozco, supra,<\/span>\u00a036 Cal.App.5th at p. 399.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he case law requires reasonable certainty, not absolute certainty, and once the occurrence of lost profits is established a plaintiff has greater leeway in establishing the extent of lost profits, particularly if the defendant was shown to have prevented the relevant data from being collected through its wrongful behavior.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Asahi Kasei Pharma Corp., supra,<\/span>\u00a0222 Cal.App.4th at p. 975.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>6 Witkin, Summary of California Law (11th ed. 2017) Torts, \u00a7\u20091914<\/div>\n<div>Haning et al., California Practice Guide: Personal Injury, Ch. 3-C,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Specific Items Of Compensatory Damages<\/span>, \u00b6\u00b6\u20093:66\u20133:233 (The Rutter Group)<\/div>\n<div>4 Levy et al.,\u00a0California Torts, Ch. 52,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Medical Expenses and Economic Loss<\/span>, \u00a7\u00a7\u200952.12,\u00a052.37\u00a0(Matthew Bender)<\/div>\n<div>15\u00a0California Forms of Pleading and Practice, Ch. 177,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Damages<\/span>, \u00a7\u2009177.44\u00a0(Matthew Bender)<\/div>\n<div>6\u00a0California Points and Authorities, Ch. 64,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Damages: Tort<\/span>, \u00a7\u200964.27\u00a0(Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-78pz0k-ba615806230ba2825f8c727493eef60f hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-5ah1ck-6f6c30f2a1a95ab2ddb3915b2d828814\">\n#top .av_textblock_section.av-5ah1ck-6f6c30f2a1a95ab2ddb3915b2d828814 .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5ah1ck-6f6c30f2a1a95ab2ddb3915b2d828814 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1940","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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