When bringing a claim for a breach of contract in New York, the plaintiff must be able to present competent evidence to support the damages being sought. Speculation will not be enough to succeed in the action. How does this rule play out in everyday life?
A good example is found in a recent report by New York City’s Comptroller. He states that after conducting an audit of the city’s relationship with the Marriott Marquis hotel, the Marriott is in breach of its agreement. He further alleges that the terms of the agreement are unfair and lopsided. The Comptroller asserts that the city has lost millions of dollars in lost and unpaid rent, as well as standing to lose substantial profits if the property is sold under the option to purchase provided for in the contract. In addition, the audit indicates that the Marriott has violated the contract by failing to keep financial records for the past six years.
If the city decides to bring a breach of contract action against the hotel, it will have to provide evidence as follows:
- It will be the city’s burden to prove the extent of the harm suffered caused by the breach of the New York agreement.
- The evidence provided must present a sufficient basis for estimating the amount of damages claimed.
- The evidence must provide “reasonable certainty” as to the amount requested.
- The calculation of damages must be arrived at through measurable, reliable factors.
- The evidence cannot be based upon speculation.
Calculating damages for a breach of contract action requires the assistance of a knowledgeable legal professional familiar with the nuances of New York contract law. To learn more, contact an experienced New York business litigation lawyer today. Call our office at (888) 497-3410 for a free consultation.