Tuesday, April 21, 2009

U.S. District Court discusses loss of use damages

In Vicor Corp. v. Vigilant Ins. Co., a decision handed down last month by the United States District Court for the District of Massachusetts, the court turned to California case law for the parameters of loss of use damages.

The court held that the trial judge had correctly instructed the jury that loss of use damages include, but are not limited to, the rental value of a replacement; they also include "those reasonably understood emergency response costs to get the system up and running." Loss of use damages do not include increased maintenance and operating costs.

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