Procedural Posture

Procedural Posture

Plaintiffs, founders of a toy retailer, appealed from a judgment of the Superior Court of Los Angeles County, California, denying plaintiffs’ request for lost profits in a breach of contract action.

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Plaintiffs were founders of a retailer of toys, educational products, and computer training services for children. Plaintiffs filed suit seeking lost profits on the theory defendants negligently caused a flood in the their retail store and prevented them from launching an internet Web site for the sale of toys. The trial court found plaintiffs could not establish with the requisite certainty that profits would have been made from the operation of the online business. The trial court granted defendants summary judgment. The appellate court agreed that defendants met their summary judgment burden as to the entire damage element of plaintiffs’ cause of action, which sought only lost profits. Further, because of the speculative nature of their evidence, the appellate court concluded plaintiffs failed to raise a triable issue of material fact as to their ability to prove lost profits.


The order granting summary judgment was affirmed.