Lost Profits vs. Loss of Use: Understanding the Distinctions in Commercial Vehicle Cases

Introduction

In the world of commercial vehicle litigation, specifically relating to tractor trailers and owner operators, there are two common types of damages that may be claimed when an accident or breakdown occurs: lost profits and loss of use. It is crucial for parties involved in such disputes to understand the differences between these two concepts in order to effectively pursue or defend against such claims. This article will provide a general overview of lost profits and loss of use in the context of commercial vehicle cases.

Lost Profits

Lost profits refer to the monetary losses suffered by a business due to an accident or breakdown involving a commercial vehicle, such as a tractor trailer. Essentially, this type of damage claim seeks to recover the amount of money a business would have earned had the accident or breakdown not occurred. Lost profits may include:

1. Loss of revenue from missed shipments or deliveries

2. Loss of potential new business opportunities

3. Loss of goodwill from customers due to delays or cancellations

To successfully claim lost profits, the injured party must demonstrate that the losses were foreseeable, directly caused by the accident or breakdown, and can be calculated with reasonable certainty. This often involves presenting financial records, contracts, and other evidence to establish the business's historical revenue and projected growth.

Loss of Use

Loss of use, on the other hand, refers to the monetary value associated with the inability to use a commercial vehicle, such as a tractor trailer, due to an accident or breakdown. Unlike lost profits, which focus on the broader financial impact to a business, loss of use is specifically tied to the loss of the vehicle's functionality during the period of repair or replacement.

Loss of use damages may include:

1. Cost of renting or leasing a replacement vehicle

2. Additional labor costs incurred due to the need for alternative transportation or logistical arrangements

3. Any other expenses directly related to the loss of the vehicle's use

To claim loss of use damages, the injured party must show that the expenses were necessary and reasonable under the circumstances, and directly resulted from the accident or breakdown.

Conclusion

In summary, lost profits and loss of use are distinct concepts in commercial vehicle cases involving tractor trailers and owner operators. Lost profits seek to recover the broader financial impact on a business due to an accident or breakdown, while loss of use focuses on the specific costs associated with the loss of the vehicle's functionality. Understanding these differences is essential for parties involved in such disputes to effectively pursue or defend against claims for damages.

As a reminder, the information provided in this article is for general informational purposes only and is not intended to be legal advice. Please consult with an attorney for advice specific to your situation. For a free consultation please call (904) 800-1890 and speak to one our attorneys today.