In a legal battle between billionaire Ronald Perelman and Gagosian Gallery Inc., the gallery alleges that Perelman’s failure to pay the contracted-for purchase price for certain artwork has resulted in substantial financial harm to the company. In its breach of contract claim in New York, the gallery is seeking damages from Perelman as compensation for these losses. The gallery alleges that it lost millions of dollars because of Perelman’s actions.
To obtain damages for breach of contract in New York, the person bringing the claim must prove the amount of damages he suffered as a direct result of the breach. These damages must be based on competent evidence. Speculation alone is not sufficient. In the case involving Ronald Perelman and Gagosian Gallery, the gallery points to the money it was forced to pay the artists out of its own revenue, as well as forgone commissions, as evidence of its financial harm.
New York breach of contract laws state the following relating to damages:
- The burden is on the plaintiff to prove the extent of the harm suffered.
- The evidence must support the estimated amount of damages with reasonable certainty.
- Reasonable certainty requires reliable factors and a lack of undue speculation.
It remains to be seen whether the New York courts will find in favor of the gallery and its request for damages.
If you’ve suffered harm as a result of a breach of contract, contact an experienced New York breach of contract attorney for help protecting your legal rights. Call our office today at (888) 497-3410 for a free consultation.