Have you invested money in a project, property or business but the results never came? If your investment has gone to waste because of the other party, it may not just be bad luck or a bad decision. A thwarted investment may give rise to a claim for damages. When is it possible to claim damages for a failed investment and how do you go about getting your money back?
A failed investment is when you have invested money in a project but the expected outcome has not materialised and the investment has lost its purpose. Typically, this is when you pay for a project, service or collaboration that was not completed, implemented or never had a realistic basis. However, not every lost investment automatically means a claim for damages. In fact, the law distinguishes between normal investment risk and cases where an investment has failed due to the wrongful act of another person.
If someone breaches a contract, provides false information, acts negligently in breach of their legal or contractual obligations, or even fraudulently, liability for damages may arise. This is when the lost investment is dealt with by damages. The decisive factor is always the specific legal assessment – that is, whether there is a direct link between the other party’s conduct and your financial loss.
Have it reviewed by a lawyer. We’ll assess your chances, devise a strategy and prepare a challenge. If necessary, we will file a lawsuit and provide legal representation.
A claim for damages for a failed investment most often arises when the other party breaches its obligations. A typical example is a breach of contract – for example, if the supplier fails to deliver the agreed performance, complete the project or meet the agreed terms. Cases where the investor has made its decision based on false or misleading information provided by the other party are also common.
Damages are also awarded in situations where the other party has acted negligently, for example without the necessary authorisations, expertise or realistic ability to complete the project. More serious cases may also involve fraud. In practice, it often turns out that the investment was not lost by accident, but as a result of mistakes or deliberate actions by another person.
This is why it makes sense to have each case professionally assessed. What at first sight looks like an unfortunate investment may in fact be a wasted investment with a right to compensation.
Find out whether you are also entitled to compensation for a wasted investment.
Disinvestments are encountered in a wide range of areas. For example, investments in real estate projects that were never completed, even though the investor paid large deposits, are common. Another typical case is a paid-for business project or an IT solution that should have been delivered but was never built or was unusable.
Thwarted investment can also include situations where someone has invested in a business based on false economic data, overstated promises or concealed risks. In practice, there are also cases of paid deposits or advances that have been forfeited due to non-performance by a business partner.
The common denominator in these situations is that the investor would not have made the investment in the first place if he had known the true state of affairs. This is the key to claiming damages.
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Compensation for a lost investment is not just about the amount invested. The law distinguishes several components of damages that can be claimed. The basic one is the actual damage, i.e. the money you actually invested in the investment. However, in addition to this, there may also be lost profits, i.e. what you would have earned in the normal course of things if the investment had not been frustrated. The condition is that it can be demonstrated with sufficient specificity.
In some cases, other costs, such as interest on loans, fees or follow-on investments you made in the belief that the project would succeed, may also be included in the damages. Getting the damages right is crucial – a poorly determined claim can significantly reduce the chances of success. We can help you calculate how much compensation you can actually claim for your lost investment.
One of the hardest parts of the whole process is proving it. It is not enough to simply claim that the investment failed. It is necessary to prove that the frustration of the investment was due to the specific actions of the other party. Typical evidence includes contracts, invoices, email communications, proposals, presentations or marketing materials.
Proving a causallink between the other party’s conduct and the loss is also key. This is where the success of the entire claim often breaks down. Without the right legal reasoning, a legitimate investment that has been frustrated may not ultimately be compensated. With legal help, you will greatly increase the chances that your thwarted investment will be successfully addressed with damages.
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In practice, we repeatedly encounter mistakes that can completely destroy an otherwise legitimate claim. Waiting too long is a common problem, as a claim for compensation can become time-barred. Another mistake is incorrect legal qualification of the case or underestimation of the amount of damages.
There is also the risk of ill-considered communication with the other party, which can lead to loss of evidence or weakening of the investor’s position. This is why it pays to address a failed investment with a professional right from the start.
If the amount involved was higher, the contractual relationship more complex, or if the other party refuses to cooperate, legal assistance is virtually essential. An attorney can properly assess whether the thwarted investment compensation is realistic, prepare a strategy and ensure an effective claim – whether out of court or in court.
An affordable attorney specializes in damages, including in cases of thwarted investments. We will assess your case online, explain your chances clearly and suggest a course of action. We’ll take care of the legal argument, communication with the other side, and the actual filing of the claim.
Our advantage is speed, transparent prices and experience with similar cases. That way, you know where you stand in advance – and can make your decision without unnecessary risk.
A wasted investment is when you put money into a project, property or business but the expected outcome never materialises due to the actions of the other party, and this is not just a normal business risk, but a situation caused by, for example, breach of contract, false or misleading information, negligence or fraud, and this is when a claim for damages may arise. Compensation for a lost investment may relate not only to the amount invested, but also to lost profits or other related costs, the key being a correct legal assessment, quantification of the loss and proof of a causal link between the other party’s conduct and the loss suffered. In practice, mistakes are made mainly by waiting until the claim is time-barred, by poor legal qualification or by ill-considered communication with the counterparty, so it pays to address the lost investment with a lawyer early. An affordable attorney offers a quick online assessment, strategy design, and complete compensation claim, greatly increasing your chances of recovering your money.
Yes, even without a written contract, a claim for damages for lost investment can arise. What matters is whether the agreement and the obligations of the other party can be proven by other evidence, such as emails, reports, invoices, witness statements or payment documents. The legal assessment is crucial in these cases.
As a general rule, a claim for compensation is time-barred within three years from the time you became aware of the damage and who was liable. If you miss the time limit, the other party can successfully argue that the claimis time-barred and becomes unenforceable in court, even if it was justified.
Yes, in many cases, a wasted investment can be resolved out of court, for example through a pre-suit notice or negotiation. A properly drafted legal challenge often leads to an agreement and saves the time and costs of legal proceedings.
Yes, even for smaller amounts, claiming compensation can make sense, especially if the legal situation is clear or if there is a risk that similar behaviour will be repeated against other people. Online legal services make it possible to deal with even smaller lost investments efficiently and without unnecessary costs.
The first step should be to gather all available documents and evidence and then to legally assess the case. The sooner you contact an attorney, the better your chances of successfully pursuing compensation and minimizing further losses.
Get compensation for harm or damage – quickly and without stress. We will assess your chances, propose a strategy and prepare a challenge. All within 48 hours of placing your order. If necessary, we will then file a lawsuit and arrange legal representation. We will stand up for you fully.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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