Page 32 - Calculating Lost Profits

 Is there a time when the replacement supplier’s price would match the original supplier?

 Is there a time when the original supplier will again supply American Kitchen?

 Was it reasonable to expect the original supplier to remain in place, and for how long?

Mitigation affects tort matters in the same way as it does breach of contract matters. Specifically, the
plaintiff has an obligation, in many cases, to make reasonable efforts to minimize losses of revenue and
profits. Using the previous tort example, this would include consideration of whether American Kitchen
took reasonable steps to find a replacement supplier. Mitigation is addressed in greater detail in chapter
11.

Although determining the loss period may seem like a straightforward task at the onset of an engage-
ment, there are several issues that may need to be considered. Due to the specific facts and circumstanc-
es present on each case, the previous discussion regarding the loss period illustrates the types of issues
one may encounter. The loss period is typically an area determined by the trier of fact, where the practi-
tioner can often perform analysis and investigation of relevant issues to assist the trier of fact to under-
stand information relevant to the loss period.

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