Tag: Lost Profits
-
Accounting Expert’s Reliance upon a Disputed Fact does not Equate to Insufficient Facts
In a recent legal battle between Mo Pow and Crypto, the spotlight has fallen sharply on expert testimony, specifically the lost profits analysis provided by Mo Pow 4’s expert, David A. Hall. This case, fundamentally about two failed digital currency mining agreements, has turned into a fascinating examination of expert witness reliability and the challenges…
-
Accounting Expert Witness’ Calculations of Lost Profits and Plow-Down Costs Survives Daubert Challenge
Polypack sued Nestlé for breach of contract and breach of implied covenant of good faith, claiming Nestlé failed to make final payments for equipment and service fees. Nestlé counterclaimed, alleging defective equipment and failure to meet performance requirements, resulting in significant financial losses, including lost profits, additional labor costs, and storage fees. Nestlé retained David…
-
Accounting Expert Witness’ Opinions About the Unpaid Consulting Fees Excluded
In early 2015, Plaintiffs, US Thrillrides, LLC (“USTR”) and Polercoaster, LLC began discussions with Defendant, Intamin Amusement Rides Int. Corp. Est. about partnering to build Polercoasters for Plaintiffs’ customers. The “Polercoaster” is “a roller coaster that is supported or suspended from a vertical tower instead of moving along a horizontal track.” This case arises from a…
-
Accounting Expert Witness’ Testimony on Damages Admitted Because it Includes Independent Analysis
Plaintiff American Power, LLC (“AMP”) is a trucking-logistics company headquartered in Dayton, Ohio. According to the Complaint, Plaintiff invested in and loaned $450,000 to Defendant Dektrix LLC, a transportation-servicing company headquartered in Utah. The Complaint charges that the investment and loan were fraudulently obtained and ultimately worthless. Plaintiff sought to impose liability upon Dektrix and…
-
Accounting Expert Witness’ Testimony Excluded Because He Makes No Effort to Distinguish Lost Profit Damages
It all started when GE and X-Ray contracted for the acquisition, sale and purchase of certain equipment and services required to outfit a nuclear radiopharmaceutical laboratory—the first of its kind in Jamaica. X-Ray later accused GE Entities of breaching their duties of care to X-Ray and breaching various components of the operative agreement– the International…
-
Economics Expert Witness’ Conclusions Regarding Lost Profits Damages Admitted
In this action, the Frazier Parties alleged that the Eagle Air Parties lacked probable cause to sue them for defamation and other similar claims in an underlying lawsuit that concluded in 2020 (the “Underlying Action”). The Frazier Parties claimed that the Underlying Action damaged Sentinel’s existing or prospective client relationships, resulting in lost profits of…
-
Business Valuation Expert Witness’ Financial Projections Admitted
Plaintiff American Northwest Distributors Inc. (“ANW”) was the Washington distributor of Four Roses bourbon, produced by Defendant Four Roses Distillery LLC (“Four Roses”), for about five years from 2015-2020. In 2020, after a pattern of late payments from ANW, Four Roses terminated the distribution agreement and switched to a competitor, Young’s Market Company, LLC (“Young’s…
-
Intellectual Property Valuation Expert Witness Reasonable Royalty Analysis Deemed Deficient
Judge Joshua Wolson of Delaware District Court noted that, “Economists love assumptions. One joke recites that a physicist, a chemist, and an economist find themselves on a desert island with a single can of food. The physicist offers to calculate the force needed to use a coconut to open the can. The chemist offers to…
-
Accounting Expert Witness’ Two-Party Market Analysis Admitted
Hayward Industries, Inc. (the Plaintiff), a company in the pool industry, filed a complaint against competitors (the Defendants) over the sale of aftermarket replacement salt cells for use in Plaintiff’s chlorine generator systems. Chlorine generators, also known as “salt cell systems,” convert dissolved salt into chlorine to sanitize pools. Chlorine generator systems replace the need…
-
Methodology employed by the Business Valuation Expert Witness to compute damages passes the Daubert test amidst alleged violations of consumer protection laws
This case involved a dispute over the admissibility of expert testimony regarding damages in a lawsuit filed by Innovative Solutions International, Inc. (“Plaintiff”) against multiple Defendants, including Houlihan Trading Company, Inc. and Pilgrim’s Pride Corporation (“Pilgrims”). Pilgrims, a company involved in preparing and packaging chicken for resale, supplied chicken that went through several vendors before…
