The Theory of Compensating Certain Lost Profit Damage in Imamiya Jurisprudence

Lost profit damage refers to the damage due to losing the profit because of the actions of an infringer or the profit that the obligee would have been received if the obligor had fulfilled his obligation; no matter whether the profit is generated from a specific property or person, or is received merely because of fulfilling the obligation. Imamiya jurists have a difference of opinion over compensating lost profit damage. Some jurists do not believe in compensation for lost profit damages presenting the reasons that lost profit is not subsumed under the rubric of damage, potential profits have no financial value, such profits do not exist in practice, and the lack of causality. On the other side, the proponents of compensation for lost profit damage resort to the principle of lā-ḍarar (denial of injury or malicious damage), the principle of itlāf and tasbīb (causing direct or indirect damage or loss), the financial value of profits, and intellectuals’ stipulation. Scrutinizing the reasons presented by the proponents and the opponents shows that only some cases of lost profits are subjected to compensation by the proponents, while the opponents reject the compensation for lost profits in some other cases. Therefore, the paper concludes that certain lost profit damage is compensable and contingent lost profit damage is not compensable. Certain lost profit damage refers to the cases in which the disruptive action’s role as the exclusive cause of damage is confirmed, while such role is not demonstrated in contingent lost profit damage.