News Category: economic damages & lost profits


Do you know the common elements of lost profits damages cases?

Among a dynamic array of other topics, BVR’s newest publication, The Comprehensive Guide to Economic Damages, covers the common elements of lost profits damages cases. This excerpt from the guide discusses how a plaintiff typically must establish three elements to recover lost profit damages: proximate cause, forseeability, and reasonable certainty. Read more >>

Lost profits case awaiting Supreme Court decision

The United States Supreme Court has agreed to review a patent infringement case on the scope of damages. The issue is whether a patent holder may obtain lost profits for actions that occurred outside the United States, where the patentee has proven a domestic act of infringement. Read more >>

Don’t assume causation, AICPA panel warns damages experts

Causation presents one of the most vexing problems for damages experts. But ignoring causation and simply working off the assumption that it exists may end up being the biggest problem for an expert. Read more >>

In unusual business tort case, court exhibits flexibility in terms of calculating damages

The 8th Circuit recently upheld a sizable damages award in an unusual business tort case litigated under Nebraska law. One noteworthy aspect in terms of determining economic damages was that the court allowed expert testimony regarding the loss of value to the plaintiff even though the plaintiff did not fail completely upon the wrongdoing. Read more >>

Federal Circuit drills down into Panduit, apportionment, and lost profits

The Federal Circuit recently examined a paramount damages issue that comes up in patent cases: whether, in terms of calculating lost profits, the patent holder’s ability to meet the Panduit factors makes a separate apportionment analysis unnecessary. Read more >>

Federal Circuit reacts coolly to ‘pseudo’ lost profits argument; royalty analysis may consider profits

The Federal Circuit recently found a reasonable royalty calculation that took into account the plaintiff’s profit margin was not a lost profits analysis in disguise. The plaintiff’s expert did not try to circumvent the “but for” causation requirement that applied to a lost profits claim. Read more >>

Flop film poses unique valuation challenge

A recent bankruptcy-related case in front of the California Court of Appeal raises important questions about how one quantifies the value of a dated piece of art, a film, for which there never was a market in the first place. Read more >>

Flawed yardstick analysis sinks lost profits award

A drawn-out damages case in which a startup compression sportswear company sued the defendant "private label" manufacturer over an abandoned licensing deal promised to make the plaintiff rich but ultimately ended with nominal damages. Read more >>

Whataburger grills Wonder Woman over logo

If next year's Wonder Woman pic is boffo, it will raise the stakes in the "friendly" talks going on between Whataburger and DC Comics over the superheroine's "stacked W" logo. Read more >>

How else to look at the 'Gawker' case: It's about unjust enrichment

It's not your average lost profits or lost business opportunity case. Rather, Hogan's damages experts were successful in quantifying damages under the less-common unjust enrichment theory. Rather than focusing on the damages to Hogan, the plaintiff, stemming from Gawker's misconduct, the experts calculated the gain to Gawker, the defendant, from the misuse of Hogan's assets, that is, his brand and other intellectual property. Read more >>

Court admits expert's anti-'Georgia-Pacific' royalty calculation

There is no absolute requirement to develop a reasonable royalty based on the Georgia-Pacific framework. That's the takeaway from a Daubert ruling in which the court denied the defendant's motion to preclude the testimony of the opposing damages expert, who determined a reasonable royalty based on market data instead of the customary Georgia-Pacific factors. Read more >>

Wholesale exclusion of expert testimony contravenes Daubert, 2nd Circuit says

One error in an extensive economic analysis does not automatically call into question the entire expert opinion, the 2nd Circuit Court of Appeals recently said in the context of a securities fraud lawsuit involving the drug giant Pfizer. With this pronouncement the appeals court resuscitated a class action that had died after the district court excluded the plaintiffs' loss causation and damages expert under Daubert based on errors in the expert's event study. Deprived of the testimony, the plaintiffs were unable to prove two critical elements of their claim. Read more >>

Destruction of financial evidence trips up guilty party's own experts

As a damages expert, what do you do when your own client has destroyed vital financial information? Two highly educated finance professionals working on a contract case solved this dilemma by relying exclusively on the opposing side's sales projections, only to see their analysis buckle under a Daubert challenge. Read more >>

Mississippi high court sets record straight on assessing economic damages

A Mississippi trial court’s cavalier approach to determining economic damages in a dispute involving allegations of breach of fiduciary duty and usurpation of a business opportunity triggered a petition with the state Supreme Court to clarify the applicable measure of damages. The trial court used the wrong standard and accounting procedures for calculating the loss to the plaintiff, the Supreme Court decided. Read more >>

Chancery finds financial advisor’s merger work close to perfection but no cigar

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