Vanderbeek v. Vernon Corp.

Summary

The Colorado Supreme Court addresses the appropriate standard for consequential damages arising from wrongful attachment, an economic tort. It holds that recoverable damages must be the natural and probable result of the tortious act, proximately caused, and reasonably ascertainable. The court affirms an award for the increased cost of acquiring 95,000 shares of stock but denies speculative lost profits on 105,000 shares that were not purchased.

Holdings

1. Consequential damages arising from an economic tort are recoverable when they are the natural and probable result of the injury sustained by virtue of the tortious act, are proximately caused by that act, and are reasonably ascertainable. The more restrictive Hadley v. Baxendale contract standard does not govern when the breached duty arises independently of a contract.
2. The wrongful attachment proximately caused both the increased price Respondent paid to acquire 95,000 shares of Osicom stock and Respondent's inability to purchase an additional 105,000 shares.
3. The additional amount Respondent paid to acquire 95,000 Osicom shares was reasonably ascertainable and recoverable as consequential damages.
4. Respondent could not recover claimed lost profits on the 105,000 Osicom shares it did not purchase because the amount of those profits was not reasonably ascertainable.

Questions Presented

1. What standard governs recovery of consequential damages arising from wrongful attachment and other economic torts?
2. Whether the wrongful attachment proximately caused the increased price Respondent paid for 95,000 Osicom shares and Respondent's inability to purchase an additional 105,000 shares.
3. Whether the increased acquisition cost and claimed lost profits were reasonably ascertainable and therefore recoverable.

Disposition

affirmed