Legal Definitions - lucrum interceptum

Lucrum interceptum is a Latin legal term that refers to the lost profits or foregone gains that an individual or business would have reasonably expected to earn, but was prevented from doing so due to another party's wrongful act. This could stem from a breach of contract, a negligent act, or another type of civil wrong. Essentially, it represents the financial benefit that was "intercepted" or taken away from the injured party.

Here are some examples to illustrate this concept:

• Business Contract Breach: Imagine a small organic farm that contracts with a major grocery chain to supply a large quantity of specialty produce for a new marketing campaign. The grocery chain unexpectedly cancels the order at the last minute, after the farm has already planted and cultivated the crops specifically for this contract. The farm's lucrum interceptum would be the profit it would have earned from selling that produce to the grocery chain, which it now cannot easily sell elsewhere or at the same price, plus any additional costs incurred due to the cancellation.

• Property Damage and Business Interruption: Consider a popular restaurant that suffers significant damage to its kitchen due to a burst pipe caused by a negligent plumbing repair. The restaurant is forced to close for three weeks while repairs are made. The lucrum interceptum for the restaurant would include the net income (revenue minus operating costs) it would have generated from food and beverage sales during those three weeks of closure, as well as any lost income from catering events that had to be canceled.

• Professional Negligence: A freelance architect is hired to design a custom home. Due to a critical error made by a surveying company in mapping the property boundaries, the architect's design is found to be unbuildable according to local zoning laws, and the client cancels the project. The architect's lucrum interceptum would be the fee they would have received for completing the design work, as well as any potential future projects or referrals from that client that are now lost due to the surveying company's mistake.