Economic Damages case studies

Case study #1

Situation: A plaintiff group suffered damages due to breach of contract and minority oppression.  The plaintiff group made a significant investment and never received any distributions from an otherwise profitable and working capital rich enterprise. 

Baker Tilly solution: We presented a multi stage damage model and provided expert testimony to the Delaware Chancery Court.  The expert report and testimony was accepted without meaningful rebuttal. 

Result: The plaintiffs won their case and the Chancery Court made a significant damage award

Case study #2

Situation: A plaintiff felt it suffered economic damages that occurred relative to a tortious interference case.  This was a FINRA arbitration that centered on an individual that was ultimately found to have been wrongfully terminated.  The termination resulted in the loss of a high-paying executive position projected to be well over $1 million a year. The Plaintiff also was black listed from the financial industry.  By the time the case came to arbitration, the plaintiff mitigated some of the damages by establishing his own company that had significant earnings.   

Baker Tilly solution: We presented damage calculations in the arbitration, as well as an expert report and expert testimony

Result: $10 million damage award to our client.

Case study #3

Situation:  A New York start-up company inappropriately lost their exclusive distribution rights after incurring significant marketing and investment costs.  The distribution relationship was terminated at the time the company was just hitting the breakeven point, hence there was no earnings history. 

Baker Tilly solution: The plaintiff retained BT to provide an expert report and testimony to quantify the lost business opportunity and out of pocket expenses.   

Result: The client was award the exact amount as calculated by our firm. 

We received a very favorable write up by the arbitrator as follows: “The undersigned Arbitrator finds Mr. BT Expert’s testimony to be clear, convincing, and truthful in all respects.  The undersigned Arbitrator was also impressed by his professional demeanor and his impressive background and experience in his chosen field.  Moreover, the Respondent’s opportunity to cross examine Mr. BT Expert offered no reason to reject or doubt the efficacy of his finding and did not in any way damage the strength of his sound, expert opinions.”

We were also praised by our client as follows: “You are an important part of the team and without your hard work and expertise on the witness stand; I think we would have had a different outcome. The fact that the judge awarded us 100% of your valuation speaks volumes about his assessment of your competence.  You clearly know what you’re doing!”