Virginia High Court Defines How Damages Calculated for Breach of Noncompete

In Preferred Systems Solutions, Inc. v. GP Consulting, LLC, Nos. 11906, 11907 (Sept. 14, 2012), the Supreme Court of Virginia, for the first time, defined how to calculate  damages for the breach of a noncompete provision where the breach resulted in the loss of an expected contract. The court found that damages calculated as the lost profits for the contract expectancy are appropriate even if there is no "guarantee" that the future contract would have been awarded, and the measure of lost profits can be determined by applying the profit margin of the losing party to the time billed by the benefitting party. To learn more about the decision, please see Littler's ASAP, Supreme Court of Virginia Defines Damages Calculation for Breach of Noncompete, by Linda Jackson.

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