Expert Forensic Accountants Calculate Damages for Commercial Litigation
Detailed calculations inform plaintiff and defense attorneys
“How much is the case worth?” That’s a question plaintiff attorneys must ask, even before they decide to take the case. It’s the question defense attorneys ask when deciding whether to settle a claim or fight. No matter which side of the controversy you’re on, you want reliable information about the value of the case, and that starts with a calculation of economic damages. Your law firm can rely on North American Forensic Accounting PC, which is led by certified experts in forensic accounting, to perform calculations of economic damages. We draw on decades of experience to provide thorough, detailed assessments that attorneys can trust to guide their litigation and negotiation strategy. Ultimately, the question of how much your case is worth may go before a judge or jury, who will decide whether and how much the defendant will pay. Before that happens, you want to be confident you’ve received trustworthy information from qualified experts.
Economic damages for a wide array of commercial litigation cases
NAFA’s forensic accounting experts also calculate economic losses for a wide range of commercial disputes. We consult with plaintiff and defense attorneys on cases that include:
- Breach of contract — NAFA calculates general damages, as well as special damages. Depending on the circumstances and litigations strategy, we can figure other amounts, such as restitution, quantum meruit, liquidated damages and punitive damages.
- Tortious Interference — When a third party interferes unlawfully with a business arrangement, your company may be entitled to compensation that restores the benefit of your original bargain. We can support your case with expert analysis.
- Restraint of trade — Federal and state laws proscribe ways that competitors can impede your ability to conduct business freely. When violations occur, we can calculate your lost profits.
- Business defamation — Intentional false and malicious statements can harm your business. When you’ve been libeled, we calculate the damage to your reputation.
- Unfair competition —Antitrust law limits the way competitors can form alliances to suppress your sales. NAFA calculates losses due to antitrust violations.
- Fraudulent misrepresentation — When material misstatements prompt you to make business decisions against your interest, NAFA calculates the damage your company suffered.
- Trade secret theft and trademark infringement — When someone violates your intellectual property rights, we can calculate the amount of business you lost (and may continue to lose) due to the theft or infringement.
- Professional liability — When a licensed professional, such as an accountant, is alleged to have committed malpractice, we can calculate the losses to the client.
When you retain NAFA to perform a damage calculation for your business litigation, you get experienced forensic accountants who can also assist in discovery and appear in court as expert witnesses, proving highly professional and providing credible testimony.
Damages sought in business and commercial litigation
Most business and commercial litigation seeks compensatory damages for an alleged wrong the defendant has done to the plaintiff. Compensatory damages are often measured in lost profits the plaintiff would have secured if not for the defendant’s wrongful conduct. Compensatory damages generally fall into two broad categories:
- Incidental damages — Also known as “general damages,” these are losses that flow directly from the wrongful conduct and are immediately apparent. An example is lost profits because a business couldn’t open on time due to a supplier’s failure to deliver.
- Consequential damages — These “special damages” are directly related to the wrongful conduct but lie a bit farther downstream. An example is loss of reputation and market share. In breach of contract cases, consequential damages must have been foreseeable at the time the contract was formed.
Parties to a contract often seek to protect themselves against common breaches by writing into the contract a clause on liquidated damages. These are a form of compensatory damages, but they need not be proved. A court will enforce liquidated damages provided they are not so unreasonable as to constitute a penalty.
In particularly egregious cases of misconduct, a court can award punitive damages, also known as exemplary damages. These are meant to punish the defendant and discourage others from acting in a similar manner. Depending on the type of case and the state where it is tried, punitive damages can be codified as a factor of compensatory damages. “Treble damages” is a common rubric, where courts assess three times the compensatory amount as the amount of punitive damages.
NAFA’s team of expert forensic accountants provide detailed calculations of commercial damages under a variety of challenging circumstances. These might include new businesses without a track record of performance and businesses with poor record keeping. We are also adept at adjusting lost profit calculations for outside factors, such as COVID lockdowns, inflation, market trends, and changes in consumer behavior.
Contact North American Forensic Accounting PC for damages calculations in civil litigation
North American Forensic Accounting PC performs economic damages calculations for a wide range of business and commercial law cases. We have the knowledge, experience, and resources to support high-stakes litigation in need of expert reports and testimony. Headquartered in Harrisburg, PA, NAFA serves clients throughout the United States, including in Philadelphia, Pittsburgh, New York City, Atlanta, Charlotte, Miami, and the Tampa Bay Area. Call us at 347-286-4860 or contact one of our offices online to schedule an appointment.