Commercial Damages
WE provide DAMAGE calculation services to our clients in the context of the following actions:
• Breach of Contract
• Fidelity Losses
• Class Actions
• Lender Liability
• Criminal Proceedings
• Negligence
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SOME of our representative Commercial Damages engagements include:
Our client operated a collection center for drawing blood samples
ordered routinely by physicians. Plans to expand into the laboratory
testing of these samples, a new line of business for the plaintiff, was
thwarted when the lab equipment failed to operate properly. We prepared
the damage calculations and testified in court. Aggressive, persistent
efforts by the defendant to disallow our testimony based on “the new
business rule” were overruled repeatedly.
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Our client purchased a machine to automatically fill prescriptions at its pharmacy retail operation. The facility was to deliver annotated glassine packages for use by summer camp personnel in dispensing camper medication. The marketing of this concept was very well underway, but the machine didn’t work as expected. We assisted by calculating the economic damages resulting from the alleged machine failure.
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Our client operated a beauty salon and spa that was forced to close due to safety violations that breached the lease agreement with the landlord. We assisted in computing the lost profits for the remaining term of the lease. Profits included those from current lines of business in beauty products and expected sales of new salon products.
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In a very interesting matter which alleged breach of contract, our client, representing the plaintiff, asserted that the defendant had not used its “best efforts” in marketing this luxury, river cruise line. Our job was to calculate the lost bookings and hence lost profits because of the minimal marketing. Fixed capacity economics, with its fixed cost/incremental profit implications, was a primary foundation of our damage theory.
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We evaluated the damage calculation for our defendant client who was alleged to have breached a licensing agreement. The evaluation involved the lost sales and profits of a major consumer processed food product in a large Pacific Basin national market. The matter was settled prior to trial.
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On behalf of an insurance carrier, we established the potential losses with respect to a fidelity claim. The claimant had asserted that a senior official of this financial institution was taking bribes in return for favorably administering construction loans. The Proof of Loss exceeded $100,000,000.
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Working for the Attorneys General of the 50 states, we developed procedures by which the defendant in a class action suit calculated the individual damages to be returned to the class members. In addition, we monitored the defendants’ compliance with those procedures and reported the statistical conclusions to the Attorneys General.
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In a lender liability suit, we worked with and testified on behalf of the plaintiff who alleged that inappropriate restrictions placed on the borrowing capacity seriously reduced their ability to satisfy customer demand. We opined on both lost profits and diminished corporate worth.
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We developed a theory of damages and calculated the resultant damage elements on behalf of the plaintiff in a breach-of-contract dispute. The defendant had been retained to develop and install a computer system for a multinational prestige personal products manufacturer. Damages were estimated in excess of $100,000,000.
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We testified in a contract matter in which a supplier caused our client’s new business enterprise to fail before it could be launched. Based on an analysis of the potential domestic and international markets, an assessment of our client's business plans and managerial capabilities and a review of the historical financial performance, we provided an estimate of the potential lost sales and lost profits.
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We have worked for a local District Attorney on a number of cases which led to testimony before a grand jury and ultimately indictments. Our testimony supported the allegations that funds had been deliberately misappropriated by a fiduciary.
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We were asked to calculate losses related to the theft of “trade secrets” when an ex-employee took computer files when he was dismissed. He subsequently went to work for a competitor and contacted customers of the old employer for the purpose of moving their business.
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