Opinion ID: 2051647
Heading Depth: 3
Heading Rank: 2

Heading: Direct Costs

Text: [¶ 24] Rutland maintains that he lost $61,800 in direct costs as a result of the Mullens' actions, including $16,000 for mortgage interest paid for the four-year delay caused by the Mullens and $42,400 for interest and depreciation costs incurred on the heavy equipment Rutland purchased for the development project. [9] Rutland estimated an interest rate of ten percent on the mortgage and equipment financing, and claims that, based on his experience in determining heavy equipment depreciation, a rate of ten percent is conservative. [¶ 25] Although a correct measure of damages may not be based on conjecture or speculation, an informed estimate based on actual market rates may form a sufficient basis for an award of damages. Wendward Corp. v. Group Design, Inc., 428 A.2d 57, 61-62 (Me.1981). We reject the Mullens' contention that damages may not be based on estimated interest and depreciation rates, and conclude that the court did not err in permitting the jury to consider such evidence. Rutland's claim for direct costs damages is therefore supported by the evidence. Because the jury's award of damages did not differentiate between the tortious interference and nuisance claims, however, nor between direct costs and lost profits, we vacate the entire award of compensatory damages and remand for retrial of the issue of compensatory damages on the nuisance claim only with respect to the direct costs component of compensatory damages. [10]