Glossaire

Loss of profit (lucrum cessans)

Loss of profit under the lucrum cessans doctrine specifically refers to future profits lost as a consequence of the harmful event — the prospective dimension of economic damages, as opposed to damnum emergens (actual past losses already incurred). In both French and Swiss law, lucrum cessans is a recognised head of recoverable damages provided it is sufficiently certain and directly caused by the wrongful act. Its quantification requires forward-looking financial modelling — typically DCF-based projections of the lost revenue stream, discounted to present value at the appropriate risk-adjusted rate.

Example: a Swiss distribution company loses a 5-year exclusive contract due to wrongful termination. Hectelion quantifies the lucrum cessans as the present value of 5 years of lost net margins: CHF 480,000 annual net contribution, discounted at the company's WACC of 9.5%. Present value: CHF 1.85 million — added to damnum emergens of CHF 340,000 for a total claim of CHF 2.19 million, supported by a formal expert report submitted to the arbitral tribunal.

Hectelion quantifies lucrum cessans using DCF methodology in commercial litigation and arbitration proceedings across French and Swiss jurisdictions.

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