Law Lessons from RENATE GRAVERS, ET AL. V. PETER U. LANFRIT, ESQ., ET AL., App. Div., A-3205-10T1, February 3, 2012:

In order to recover damages based on legal malpractice, a plaintiff has the burden to show, by a preponderance of the evidence, that specific damages were sustained as a proximate result of a defendant’s wrongful conduct. See Lieberman v. Emp’rs Ins. of Wausau, 84 N.J. 325, 342 (1980). “Although we require a reasonably accurate and fair basis for the computation of alleged lost profits, the fact that a plaintiff may not be able to fix its damages with precision will not necessarily preclude recovery of damages.” V.A.L. Floors, Inc. v. Westminster Cmtys., Inc., 355 N.J. Super. 416, 424 (App. Div. 2002). “Loss of profits, where based on sound fact and not on mere opinion evidence without factual support, is recognized as a proper measure of damages if ‘capable of being estimated with a reasonable degree of certainty.’” Stanley Co. of Am. v. Hercules Powder Co., 16 N.J. 295, 314 (1954) (quoting Rempfer v. Deerfield Packing Corp., 4 N.J. 135, 144 (1950)).

However, “[a]nticipated profits that are too remote, uncertain, or speculative are not recoverable.” Desai v. Bd. of Adjustment of Phillipsburg, 360 N.J. Super. 586, 595 (App. Div.) (citing Stanley Co., supra, 16 N.J. at 314; V.A.L. Floors, supra, 355 N.J. Super. at 426), certif. denied, 177 N.J. 492 (2003).

Also, “prospective profits of a new business are considered too remote and speculative to meet the legal standard of reasonable certainty.” RSB Laboratory Servs., Inc. v. BSI, Corp., 368 N.J. Super. 540, 556 (App. Div. 2004) (citing In re Merritt Logan, Inc., 901 F.2d 349, 356 (3d Cir. 1990); Weiss v. Revenue Bldg. & Loan Ass’n, 116 N.J.L. 208, 212 (E. & A. 1936)).

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