Pier

Facts

Pier 1 (P) is a Brazilian travel agency that specializes in cruises and cruise packages. P sells both through sub-agencies-approximately 300 individual travel agencies located around Brazil-and directly to customers. P wanted a first-of-its-kind website with an online distribution channel for booking options in Portuguese and payment in Brazilian reais. P hired Revelex (D) to build its website. D promised to deliver on each of P's requirements-content in Portuguese, prices in reais, and sub-agent booking capabilities-and indicated that, once work started, the website software could be completed in approximately six months. Needless to say, P sued D for breach of contract and negligent misrepresentation. P's lost-profits claims rested on the testimony of its financial manager, Mariana Peres, who was not tendered as an expert but rather appeared as a lay witness. She projected that if D's software had worked, P would 'have doubled the number of cruises' sold through online channels alone, which would have meant selling about one additional cruise per month either directly or through its sub-agents. Peres further testified that Pier 1 brings in revenue, on average, of $1,000 per cruise. She also predicted a 10% increase in Pier 1's expenses. Peres based her calculation on P's historical sales and its experience in the Brazilian cruise industry. D objected that Peres, as a lay witness, was attempting to offer expert testimony, the district court agreed and cut off her testimony. P presented no other evidence pertaining to lost profits, and the district court later granted judgment as a matter of law against its lost-profits claim. The district court granted D's judgment as a matter of law on P's claim for lost profits, concluding that P's supporting proof was impermissibly speculative and thus legally insufficient.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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