Assumption Underlying Lost Profits Analysis Challenged as 'Net Opinion'
The New Jersey Superior Court, Appellate Division, determined that an accountant’s lost profits estimate was not a net opinion where the approach used was adequately supported by reference to accounting and industry standards. Rather, it found that the as ...
Fairway Dodge, Inc. v. Decker Dodge, Inc.
The New Jersey Superior Court, Appellate Division, determined that an accountant’s lost profits estimate was not a net opinion where the approach used was adequately supported by reference to accounting and industry standards. Rather, it found that the as ...
Advanta USA, Inc. v. Farmers Fertilizer Company, Inc.
The Kentucky Court of Appeals determined that the trial court improperly computed the amount of lost profits in this breach of contract action when it awarded profits over a five-year period rather than over 30-day period called for in the contract.
Lost Profits Attributable to Loss of At-Will Employee Stricken
The Virginia Supreme Court reversed a trial court’s decision and struck a lost profits calculation that attributed the entire loss in profits to the loss of an at-will employee.
Saks Fifth Avenue, Inc. v. James, Ltd.
The Virginia Supreme Court reversed a trial court’s decision and struck a lost profits calculation that attributed the entire loss in profits to the loss of an at-will employee because the calculation did not differentiate between the loss attributable so ...
Gesoff v. IIC Industries Inc., et al.
The Delaware Court of Chancery determined that a company-specific risk premium should not be added when computing the cost of capital when there is no financial analysis supporting the company-specific risk. Furthermore, the court held that a small stock ...
Small-Stock and Company-Specific Risk Premia Considered in Fair Value Analysis
The Delaware Court of Chancery determined that a company-specific risk premium should not be added when computing the cost of capital when there is no financial analysis supporting the company-specific risk. Furthermore, the court held that a small stock ...
Norma Romero v. Murray J. McClelland
The California Court of Appeal, 4th District, affirmed the jury’s award of $304,000 for lost future earnings capacity based in part on her inability to return to her interior decorating business following an automobile accident.
Scott E. Bova v. Theaodis Gary, Jr.
The Indiana Court of Appeals determined that the trial court may permit the recovery of lost profits from an S corporation as lost earnings capacity damages resulting from the injuries its sole shareholder and prime mover experienced in an automobile accident.
James R. Johnson v. Hamilton Medical Group
The Louisiana Court of Appeals, 3rd Circuit, affirmed the denial of past lost earnings to a self-employed person because they were inadequately documented.
Attorney Malpractice Resulted in $30 Million Lost Profits Award
The California Court of Appeal, 1st District, reversed a $30 million damages award in this attorney malpractice action.
Kairos Scientific Inc. v. Fish & Richardson, P.C.
The California Court of Appeal, 1st District, reversed a $30 million damages award in this attorney malpractice action.
Western Diversified Services, Inc. v. Hyundai Motor America, Inc.
The U.S. Court of Appeals for the Tenth Circuit adopted the definition of “willful” as “the defendant’s intent to benefit from the goodwill or reputation of the trademark holder” for use when recovering profits from an infringer in the absence of actual d ...
Tenth Circuit Creates 'Willful' Roadblock to Recovery of Infringer’s Profits Under the Lanham Act
The U.S. Court of Appeals for the Tenth Circuit adopted the definition of “willful” as “the defendant’s intent to benefit from the goodwill or reputation of the trademark holder” for use when recovering profits from an infringer in the absence of actual d ...
Startup Company May Not Recover Lost Profits Based on Post-Valuation Date Business Plan
The Ohio Court of Appeals, 9th District, reversed a jury’s damages award in this breach of contract and tort action.
Telxon Corporation v. Smart Media of Delaware, Inc.
The Ohio Court of Appeals, 9th District, reversed a jury’s damages award in this breach of contract and tort action.
Profits Are Suitable Measure of Damages for Rescission of a Business Purchase Agreement
In this contract rescission case, one of the issues was how to value business know-how, contacts, and efforts in creating a comedy business.
Lost Profits in Fraud Action Analyzed
The Texas Court of Appeals for the 3rd District considered an award of lost profits as consequential damages stemming from a fraud claim.
Spring Windows Fashions Division, Inc. v. The Blind Maker, Inc.
The Texas Court of Appeals for the Third District considered an award of lost profits as consequential damages stemming from a fraud claim. It permitted recovery for lost profits based on a before and after analysis of overall business profits, the drop i ...
Dissenting Judges Criticize Expert’s Lost Profits Calculation for Failing to Consider Lawful Factors Contributing to the Decline in Profits
The Mississippi Court of Appeals determined that lost profits damages were sufficiently proven and quantified in this business interference action based on the testimony of an economist.
Progressive Casualty Insurance Company v. All Care, Inc.
The Mississippi Court of Appeals determined that lost profits damages were sufficiently proven and quantified in this business interference action based on the testimony of an economist. The majority criticized the plaintiff for failing to introduce its o ...
Fields v. Maestro's Ristorante of San Ramon, Inc.
In this contract rescission case, one of the issues was how to value business know-how, contacts, and efforts in creating a comedy business.
Expert’s Yardstick Method Excluded Under Daubert for Failing to Perform a Market Analysis in Connection With the Damage Computation
The U.S. District Court for Kansas excluded a financial expert’s damage computation under Daubert in this false advertising matter. The expert utilized the yardstick method and a one-to-one sales loss assumption. Because she failed to perform a market ana ...
Robert J. Pound v. Airosol Company, Inc.
The U.S. District Court for Kansas excluded a financial expert’s damage computation under Daubert in this false advertising matter. The expert utilized the yardstick method and a one-to-one sales loss assumption. Because she failed to perform a market ana ...
Steve J. Rooney v. Skeet'r Beat'r of Southwest Florida, Inc., et al.
The Florida Court of Appeal, Second District reversed a lower court’s award of lost profits in this trademark infringement action because the lost profits calculation failed to consider factors other than the wrongful acts that may have lead to a decline ...