Section 10 Circumstances Under Which Lost Earnings and Lost Profits Cannot Be Claimed

• Library: Damages 2012

Under Missouri law, lost earnings and lost profits cannot be claimed under certain circumstances.

A corporation has no cause of action for lost profits when its employee is injured by the negligence of another. This is because (1) a tortfeasor cannot foresee that the negligent injury inflicted on the employee would also damage the employer, and (2) to allow such a cause of action would unduly burden freedom of action and impose too severe a penalty for inadvertence. But an employer may recover loss of services from the wrongdoer if the harm done the employee was intentional. See Frank Horton & Co. v. Diggs, 544 S.W.2d 313, 316–17 (Mo. App. W.D. 1976).

The same rules and philosophy apply to partnerships. The remaining partners have no cause of action against a tortfeasor for the loss of profits to a partnership because of injuries...