Discounting Damages: Case Law and Methods—A Legal Perspective
Training Event Transcripts
January 7, 2011
Dr. Michael A. Crain, CPA/ABV, CFA, CFE
Robert M. Lloyd, Attorney at Law
In the first part of BVR's Advanced Webinar Series on Lost Profits Damages, Michael Crain and Robert Lloyd discuss the most fundamental obstacle to the amount of a lost profits award or claim: its value—or rather, its present value. As all appraisers know, the value of money changes over time. When this fact is combined with basic considerations of the details of the case and the jurisdictional rules of the court, knowing how to properly discount a damages measurement for interest, discount, and return rates can be daunting. In their presentation, Crain and Lloyd discuss how these factors and others affect the discounting determination. Discounting for past and future damages claims are also discussed as well as how recent case law has come to impact these considerations.