Actual loss (damnum emergens)

Damnum emergens refers to the actual, concrete loss already suffered by an injured party as a direct consequence of another party's breach — as opposed to lost future profits (lucrum cessans). In commercial litigation and arbitration, quantifying damnum emergens requires establishing a direct causal link between the breach and the loss, and demonstrating the economic value of the harm with documentary evidence. In business valuation contexts, it typically covers asset impairment, costs incurred as a result of the breach, and value destruction directly attributable to the wrongful act.

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Example: a Swiss distributor suffers the sudden termination of an exclusive supply contract, incurring CHF 380,000 in emergency procurement costs, CHF 140,000 in inventory write-offs and CHF 90,000 in client compensation payments. These amounts constitute the damnum emergens, which Hectelion quantifies and presents in an expert report submitted to the arbitral tribunal alongside the but-for analysis for future lost profits.

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Hectelion quantifies actual loss and lost profits in commercial litigation and arbitration proceedings across jurisdictions.