Colorado
How Fitzgerald v. Chicago applies in Colorado: state-specific rules, key cases, and bar exam notes for Contracts.
In Colorado, the principles from Fitzgerald v. Chicago regarding damages for lost profits are relevant as the state adheres to the expectation measure of damages in contract law. Colorado courts are inclined to allow recovery for lost profits if they are proven with reasonable certainty.
Parties may recover lost profits in a breach of contract case if the profits were foreseeable at the time of contracting and can be proven with reasonable certainty.
The court held that lost profits could be recovered provided they are established with reasonable certainty and were within the contemplation of the parties at the time of the contract.
The ruling affirmed that damages for lost profits can be claimed in contracts when they are not too speculative.
This case reiterated the necessity of proving lost profits but gave guidance on what constitutes reasonable certainty in projections.
Colorado's approach aligns closely with the federal standard as articulated in the Restatement (Second) of Contracts, which emphasizes the necessity for lost profits to be proven with reasonable certainty. However, Colorado courts also exhibit an inclination to allow more leeway in accepting evidence of lost profits than some federal jurisdictions.
Understanding the treatment of lost profits under Colorado contract law is crucial for the Colorado bar exam, as it often addresses contractual damages and expectations.