Commercial Contract Breach Damages Expert Witness
Commercial contract disputes arise across supply agreements, service contracts, distribution arrangements, and bespoke B2B trading relationships. When a party fails to perform, the innocent party's remedy is damages measured by the financial loss suffered. A damages expert witness analyses the contract terms, trading records, and market context to quantify that loss in accordance with Robinson v Harman [1848], constructing a but-for model that projects the claimant's financial position had the contract been performed and compares it to actual results.
The choice between expectation loss (lost profits) and reliance loss (wasted expenditure) is a critical evidential decision. Expectation damages place the claimant in the position they would have been in had the contract been performed; reliance damages recover expenditure incurred in anticipation of performance where profits cannot be proved or the claimant made a bad bargain. Every head must satisfy Hadley v Baxendale remoteness, and the expert addresses mitigation, causation, and the distinction between direct and consequential loss with transparent sensitivity analysis on margin, volume, and cost assumptions.
Our commercial litigation damages hub at /practice-areas/commercial-damages covers the full range of commercial quantum services including lost profits, IP infringement, professional negligence, and shareholder disputes. Expert reports are prepared for the Commercial Court, arbitration, and expert determination proceedings under CPR Part 35, structured so each head of loss can be tested in cross-examination and joint expert meetings.
Frequently Asked Questions
How does a damages expert quantify commercial contract losses?
Using the but-for methodology - projecting what the claimant would have earned had the contract been performed and comparing it to the actual outcome. The expert must address remoteness (Hadley v Baxendale), mitigation, and causation - presenting the loss under each head separately with supporting financial analysis.
Can general and special damages both be recovered in commercial cases?
In commercial cases, the distinction between general and special damages maps to direct and consequential loss. Direct loss (loss of the bargain) is the equivalent of general damages; consequential loss (third-party contract losses, lost profits on follow-on work) must pass the Hadley v Baxendale remoteness test.
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