Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 6

Discovery Zone owned and operated more than 300 "pay for play children's entertainment centers" called FunCenters. It contracted with DuPont to install flooring in the centers. When they signed the contract, Discovery was emerging from bankruptcy and realigning its business according to a bankruptcy reorganization plan. DuPont fell behind in laying the floors and Discovery Zone lapsed back into bankruptcy. Discovery Zone sued for $20 million in damages, alleging that if DuPont had completed its work in a timely manner, it would have increasing revenues and would not have reentered bankruptcy. Can it recover the lost profits? Why?