Lost Profits Based on Single Price Quote Too Speculative?
Court upholds $10 million in lost profits damages against automaker supplier based on letter of intent, confidentiality agreement, and single price quote but confirms exclusion of $28 million in additional damages based on speculation.
Turner Broadcasting System v. McDavid
Court upholds jury verdict (and expert valuations) of $281 million for damages in breach of contract to sell Atlanta sports franchise.
Catlin Syndicate Ltd. v. Imperial Palace of Mississippi
5th Circuit finds that only historical sales figures should factor into business-interruption lost profits claims and not an entity’s experience following the disaster.
In re Texans CUSO Insurance Group
Court confirms expert lost profit damages of $21.1 million based on careful calculation of earnout payments under breached sale and employment agreement.
Damages Experts Lose the Daubert Battle in Deposition
Court excludes plaintiff’s financial and marketing experts at trial for failing to support lost profits damages evidence with reliable market sales data.
Lost Value of Failed Bank Turns on Expert Evidence of Market Cap and Control
U.S. Court of Appeals affirms Court of Claim’s award of $373 million for lost business value of troubled bank during savings and loan scandals, including a 50% control premium for lost enterprise/franchise value.
Multimatic, Inc. v. Faurecia Interior Systems, USA, Inc.
Court upholds $10 million in lost profits damages against automaker supplier based on letter of intent, confidentiality agreement, and single price quote but confirms exclusion of $28 million in additional damages based on speculation.
Insolvency Valuation Plays Key Role in Failed Million-Dollar Merger
Delaware Chancery Court finds buyer knowingly and intentionally breached merger agreement by seeking insolvency opinion to derail financing and avoid liquidated damages.
Jury Awards $10 Million Lost Value for Internet Startup—But Court Dubious on Damages
Court reverses a $10 million damages award for the lost value of an internet startup for failure to show any record of profitability, working capital, or products to sell.
Slattery v. U.S.
U.S. Court of Appeals affirms Court of Claim’s award of $373 million for lost business value of troubled bank during savings and loan scandals, including a 50% control premium for lost enterprise/franchise value.
Courts Finds ‘Numerous’ Reasons to Exclude an Otherwise Qualified Expert
Court excludes an otherwise “supremely qualified” expert for flaws in his experience and his expert report, including accepting attorney-provided data without independent verification.
Compania Embotelladora del Pacifico, S.A. v. Pepsi Cola Co.
Court excludes plaintiff’s financial and marketing experts at trial for failing to support lost profits damages evidence with reliable market sales data.
M & A Technology v. iValue Group Inc.
Court reverses a $10 million damages award for the lost value of an internet startup for failure to show any record of profitability, working capital, or products to sell.
Conservative Tax Affecting and Discounting Support Damages Claims
Court finds conservative use of discounts and tax affecting to be more credible when valuing an S corp software company for purposes of calculating damages (breach of agreement to purchase 25% interest).
MDG International v. Australian Gold, Inc.
Court excludes an otherwise “supremely qualified” expert for flaws in his experience and his expert report, including accepting attorney-provided data without independent verification.
Contractor May Never Recover Lost Profits for Lost Bonding Capacity?
Colorado Supreme Court reverses ruling by appellate court that all lost profits claims due to contractor’s impaired bonding capacity are speculative as a matter of law.
Denied Pre-IPO Shares, Investor Sues Attorneys for Lack of Expert Valuation
New York court decides appropriate measure for failure to deliver stock options on brink of IPO is date of breach.
Courts Void Noncompete and Remands $1.1 Million in Damages
Court remands $1.1 million damages award for proper measure of lost profits due to misappropriation of trade secret from medical staffing company.
Conservative Growth Estimates Help to Sustain Damages Award
Court sustains $20 million damages award for misappropriation of medical trade secret with help of conservative reasonable royalty and lost profits analysis.
Knott v. Revolution Software, Inc.
Court finds conservative use of discounts and tax affecting to be more credible when valuing an S corp software company for purposes of calculating damages (breach of agreement to purchase 25% interest).
Kovens v. Paul
In breach of contract to sell a large block of thinly traded stock, court determines that the measure of damages is on date of breach and fair market value is the contract price.
C. A. Walker Construction Co. v. J.P. Southwest Concrete, Inc.
Court reverses lost profits damages award in construction case for lack of sufficient evidence to support a 25% profit margin and failure to account for expenses.
Buyer’s Projections Used to Value Asset From Seller’s Perspective
In assessing value of lost patent license from the seller’s perspective, an expert may not rely on the buyer’s internal, confidential sales projections.
Expert Calculates Lost Profits Through 25-Year Contract Term
Court awards lost profits damages for breach of franchise agreement through remainder of 25-year contract term.
Lost Profit Testimony Falls Short of Needed Expert Evidence
Owners’ lost profits calculations comparing profits from his restaurant at an old location to those he made at a new location fall short of reasonable certainty standard.