And last from the LEI conference: Tom Burrage (Meyners & Company) and Nancy Fannon (Fannon Valuation Group) provided a fascinating double session on the minefield of lost profits valuations. In particular, the presenters noted the dicey tactical decision in any lost profits case whether to present a damages expert for the defense. Some defense attorneys believe that it’s a concession of liability—while others prefer to give the jury an alternative to the plaintiff’s claim for (usually) multi-million dollar losses.
To help make the decision based on real data, Fannon noted an article by Robert Trout (Lit Econ, LLP). Studying 100 cases involving economic damages, the author found that those without defense experts averaged $418,000 in plaintiffs’ awards, while those using defense experts averaged $98,000. To purchase a copy of Trout’s article, "Does Economic Testimony Affect Damage Awards?" from the Journal of Legal Economics (Vol 1., No. 1, March 1991), click here.
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