Folds v. Red Arrow Towbar Sales Co. - 378 So. 2d 1054 (La. Ct. App. 1979)

Rule:

The courts of Louisiana are in general agreement that while damages for lost profits may not be based on speculation and conjecture they need only be proven within a reasonable certainty. However, it is also well recognized that where damage (including loss of profits) and liability are certain and quantum is uncertain, courts are nonetheless required to award damages. Furthermore, in cases where direct evidence is not available to establish the exact extent of loss caused by a breach of contract, resort to customary or foreseeable profit as a measure of damage is proper.

Facts:

Plaintiff claimant contracted with defendant company and was granted an exclusive distributorship of the company's products. The defendant company continued to sell its products through other representatives. Plaintiff claimant brought suit and the trial court entered judgment for the claimant. Defendant company appealed, arguing that: (i) the trial court erred in holding it in contempt for failing to supply adequate responses to the claimant's interrogatories; and (ii) the award for loss of future profits was improper.

Issue:

1. Did the trial court err in holding defendant in contempt for failing to supply adequate responses to the claimant's interrogatories? 
2. Was the award for loss of future profits proper? 

Answer:

1) No. 2) Yes.

Conclusion:

The court held that the regulation of pretrial discovery was subject to the broad discretion of the trial court. The record revealed that several of the company's answers were untrue or at best unreasonably evasive. Nor did the trial court abuse its discretion in refusing to grant the company's motion for a continuance. A delay of almost two years between the filing of suit and the scheduled trial date was the direct result of the company's repeated refusals to comply with the court's pre-trial discovery orders. With respect to the award for loss of future profits, the court held that the evidence showed a reasonable certainty that the claimant was deprived of profits from future sales due to the company's breach of the agreement.