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Without the scrape there is an argument that only the damages above what make the claim “material” can be recovered, rather than from the first dollar of loss.
I’d say all damages (subject to consequential damages exclusions and causation) above the materiality scrape arising from the breach
Just remove the materiality scrape and raise or lower the basket to match a situation where there is a materiality qualifier. That is the cleanest way, don’t use it. If you start using materiality scrapes, there are portions of IRS that use material that are common and you would be ruining the reps that relate to that