The concept of compensation forfeiture is an option that damages plaintiffs can seek that is not difficult or expensive to prove. Plus, it can be “stacked” onto other remedies, according to George P. Roach, J.D., who practices almost strictly in damages and remedy law. In an interview in the May issue of Business Valuation Update, Roach also points out that, in some cases, compensation forfeiture may end up to be the only form of damages that can be proven with reasonable certainty.
Extensive uses: Compensation forfeiture is based on the doctrine that dishonest or disloyal employees or agents should not be compensated for any service after the wrongdoing first occurs. “The widespread applicability to various claims is not generally appreciated by either lawyers or damages analysts,” says Roach. “Therefore compensation forfeiture represents an opportunity for a damages analyst sometimes to suggest an enhancement to the client’s claims that can be made at a small increase in professional fees.”
Roach is the author of a new chapter on compensation forfeiture in the newly released 4th edition of The Comprehensive Guide to Economic Damages.