Sunnyland Farms, Inc., Plaintiff-Petitioner v. Central New Mexico Electric Cooperative, Inc., Defendant-Respondent

Summary

The court held that consequential contract damages are governed by objective foreseeability under the established contractual-damages standard, not by a separate tacit-agreement test, and affirmed the denial of Sunnyland’s contract damages because the particular fire-related losses were not objectively foreseeable when the contract was made. It reinstated the tort lost-profit award, vacated punitive damages for lack of substantial evidence supporting corporate culpability, and rejected CNMEC’s offset based on its purchase of the insurer’s subrogation lien. The court also upheld the denial of prejudgment interest and remanded for further proceedings consistent with its opinion.