Potential Issues in Using Business Appraisal as the Measure of Damages in Litigation—Dealer Termination

Business-to-business litigation typically stems from alleged action/inaction of one party and its impact(s) on another party. The form of such action or inaction (for example, a contract breach or a tortious act) will often dictate the appropriate theories of actual or compensatory damages allegedly suffered by the plaintiff from the alleged wrongful conduct. A common type of commercial dispute, and the focus of this article, involves situations in which a manufacturer has allegedly “wrongfully” terminated a contract with a distributor or dealer of the manufacturer’s products.

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