It is not uncommon to see a financially distressed plaintiff suing for lost profits asserting the acts of a defendant were causal. We will discuss if and how insolvency can impact proximate cause or intervening cause assertions. We will discuss insolvency in both contract and tort damages as well as how several courts analyzed the issue, including a dissent.
Recognize the three different indicators of insolvency
How plaintiff’s management decisions may create insolvency and how defendant can use the analysis to mitigate or eliminate proximate cause
How courts have analyzed the proximate cause issue in distressed firm
How numbers and not the story but numbers tell the story