Lost Profits Analysis Must Show Evidence of Related Costs
Court excludes lost profits evidence that does not include analysis of costs incurred to produce the income.
Denny Construction, Inc. v. City and County of Denver
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.
Medical Staffing Network, Inc. v. Ridgeway
Court remands $1.1 million damages award for proper measure of lost profits due to misappropriation of trade secret from medical staffing company.
Litigation Experts Spar Over Proceeds From Transfer of Practices
Four litigation experts/economists dispute damages calculations resulting from breach of contract to share in proceeds of transferring their practices.
Loose Lending Practices May Protect Appraisers
Lender attempts to sue appraisal firm after borrower (steel plant) defaults on loan, and forced liquidation is $5 million below appraised asset value.
Managements’ Projected Lost Profits Calculations Withstand Appeal
Expert bases solid lost profits calculations for breach of sales on management-provided projections as well as actual performance data and other corroborating sources.
Kaminsky v. Herrick Feinstein LLP
New York court decides appropriate measure for failure to deliver stock options on brink of IPO is date of breach.
Russo v. Ballard Medical Products
Court sustains $20 million damages award for misappropriation of medical trade secret with help of conservative reasonable royalty and lost profits analysis.
Businessman-Turned-BV Consultant Challenged
CEO with 30 years in business (but no BV credentials) survives Daubert challenge.
Market Value of Securities Includes Nonpublic Info
In 1998, Leonard Schneider and his three children sold their apparel companies to Norton McNaughton Inc. for $66 million plus a future earnout payment based on the companies’ performance.
Appeals Court Reduces Lost Profits to Account for Fixed Costs
KR Motors, Inc., d/b/a Autohaus of Pompano (“RKR Motors”), appeals a final judgment awarding Associated Uniform Rental & Linen Supply, Inc. (“Associated”), $82,444.00, in lost profits.
RKR Motors, Inc. v Associated Uniform Rental & Linen Supply, Inc.
KR Motors, Inc., d/b/a Autohaus of Pompano (“RKR Motors”), appeals a final judgment awarding Associated Uniform Rental & Linen Supply, Inc. (“Associated”), $82,444.00, in lost profits.
Progressive Child Care Systems, Inc. v. Kids ‘R’ Kids International, Inc.
Court awards lost profits damages for breach of franchise agreement through remainder of 25-year contract term.
Catroppa v. Metal Building Supply, Inc.
Court excludes lost profits evidence that does not include analysis of costs incurred to produce the income.
Nieman v. Bunnell Hill Development, Co., Inc.
Owners’ lost profits calculations comparing profits from his restaurant at an old location to those he made a new location fall short of reasonable certainty standard.
Structural Polymer Group, Ltd. v. Zoltek Corporation
Expert bases solid lost profits calculations for breach of sales on management-provided projections as well as actual performance data and other corroborating sources.
Hexion Specialty Chemicals, Inc. v. Huntsman Corp.
Delaware Chancery Court finds buyer knowingly and intentionally breached merger agreement by seeking insolvency opinion to derail financing and avoid liquidated damages.
Wells Fargo Business Credit, Inc. v. Dovebid Valuation Services, Inc.
Lender attempts to sue appraisal firm after borrower (steel plant) defaults on loan, and forced liquidation is $5 million below appraised asset value.
Kearl v. Rausser
Four litigation experts/economists dispute damages calculations resulting from breach of contract to share in proceeds of transferring their practices.
Willis v. TRC Companies, Inc.
CEO with 30 years in business (but no BV credentials) survives Daubert challenge.
Highland Capital Management, L.P., v. Schneiders
In 1998, Leonard Schneider and his three children sold their apparel companies to Norton McNaughton Inc. for $66 million plus a future earnout payment based on the companies’ performance.
Nano-Proprietary Inc. v. Canon
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.
Court Rejects Lost Profits Model for Inclusion of Interest
In September 2003, defendants sold their tax preparation business to Tax Services of America Inc. (TSA).
Tax Services of America, Inc. v. Mitchell
In September 2003, defendants sold their tax preparation business to Tax Services of America Inc. (TSA).
Compania v. Titan International
Seventh Circuit affirms the exclusion of testimony from a CEO because he was truly an expert witness and not a fact witness, and the deadline for expert appearances had passed.