An interview with Nancy Fannon (Meyers, Harrison & Pia) and Jonathan Dunitz, Esq. (Verrill Dana), in the April issue of Business Valuation Update takes up, among other issues, problems that can develop when preparing a damages analysis or report. Fannon and Dunitz are editors of the just-released fourth edition of the book The Comprehensive Guide to Economic Damages.
Trouble spots: The difference between preparing an economic analysis that will be used in court versus one that will not is one issue, according to Dunitz. "A valuation report written by an expert who does not have experience with litigation may be found not admissible," he says. "There are certain things the expert needs to understand to help make the analysis admissible, including the amount and types of evidence needed. Preparing a report for a damages analysis for litigation is not necessarily the same as doing one for a company’s internal use or some other purpose." The book also describes the different methodologies, the different types of damages, and how to calculate them. “It also describes the procedural rules and presents the problems that may arise and how to address them.”
“I see two main issues that cause problems with a damages analysis,” adds Fannon. “One is that experts often do not understand the appropriate remedy for a particular action. The book contains a great deal of guidance as to when to use one remedy versus another. The second main issue is how to calculate the damages. There are a lot of nuances that some experts are not aware of, including those with respect to the jurisdiction you’re in or the particular remedy that is appropriate. The book is invaluable in this regard.”
Greatly expanded: This new edition is greatly expanded from the last one, with nine new chapters from 14 new contributors. In addition, previous chapters have been revised and updated. Some of the new chapters deal with compensation forfeiture, fraudulent transfer, the use of surveys in trademark litigation, personal injury and wrongful termination, the use of statistics in damages claims, and the use of event studies in securities litigation. Some 100 cases were added to the case law section (Volume Two), many of which are related to the new chapters.
To see the table of contents for the book and an excerpt, click here.