Commercial Contract Dispute Economic Damages Expert in California

By Christopher Skerritt, M.Ed., MBA, Chief of Economic Services · Published · Reviewed

KW Economics prepares economic damages analyses for commercial contract dispute cases venued in California: the components the loss claim consists of, the records that drive them, and a present value built to California's damages rules and venues. Plaintiff and defense.

A commercial contract damages claim measures the profits a business lost, or the costs it incurred, because the other party did not perform, as the difference between the performed-contract path and what the business actually earned or could have earned by mitigating. Read the full commercial contract dispute analysis guide.

California courts and expert standards

California courts ask whether the reasoning and data behind an expert opinion are sound and whether the opinion rests on matter of a type experts reasonably rely on, reserving a general-acceptance test for novel scientific techniques; the witness is qualified by training and experience. Economic damages testimony is therefore examined on its inputs and logic: whether the worklife, growth, and discount assumptions have a published basis and whether they fit the record.

Where these cases are heard

Highest court: Supreme Court of California. Federal venues: N.D. Cal., E.D. Cal., C.D. Cal., S.D. Cal. Court system: courts.ca.gov.

Damages framework

California applies pure comparative fault in a negligence-based claim, reducing the award in proportion to the plaintiff's share. Interest before judgment runs as of right on a sum that was certain or capable of being made certain by calculation, is discretionary on an unliquidated contract claim, and in injury cases turns on the statutory offer-to-compromise procedure. Economic damages are not subject to a general statutory limit outside specific statutory claims, so the report states each loss as of a fixed date and identifies the components that were certain when they accrued.

How the analysis is built

The same four steps apply to a commercial contract dispute case venued in California; the damages framework above decides which components enter the total.

  1. Establish the but-for revenue from the contract terms, the pre-dispute projections, and the business's own history.
  2. Identify the incremental costs that would have been incurred to earn that revenue so that only the lost margin is claimed.
  3. Analyze actual results after the breach to separate the effect of the breach from market conditions and other causes, and credit mitigation revenue.
  4. Bring past lost profits forward and discount future lost profits at a stated rate that reflects the risk of the earnings stream.

Attorney guides for commercial contract dispute cases

Other case types in California

Frequently asked: commercial contract dispute cases in California

Which California courts hear commercial contract dispute cases?

Commercial Contract Dispute cases venued in California are heard in the Superior Court (Unified general jurisdiction trial court in each of 58 counties; handles all civil and criminal matters). Final appeals run to the Supreme Court of California. Matters within federal jurisdiction proceed in the United States District Courts for the Northern District of California, Eastern District of California, Central District of California, and Southern District of California.

How does California's damages framework shape the economic analysis?

California applies pure comparative fault in a negligence-based claim, reducing the award in proportion to the plaintiff's share. Interest before judgment runs as of right on a sum that was certain or capable of being made certain by calculation, is discretionary on an unliquidated contract claim, and in injury cases turns on the statutory offer-to-compromise procedure. Economic damages are not subject to a general statutory limit outside specific statutory claims, so the report states each loss as of a fixed date and identifies the components that were certain when they accrued. California courts ask whether the reasoning and data behind an expert opinion are sound and whether the opinion rests on matter of a type experts reasonably rely on, reserving a general-acceptance test for novel scientific techniques; the witness is qualified by training and experience. Economic damages testimony is therefore examined on its inputs and logic: whether the worklife, growth, and discount assumptions have a published basis and whether they fit the record.

More questions about commercial contract dispute analysis

References

Request a consultation on commercial contract dispute cases in California or call (201) 343-0700. Plaintiff and defense counsel.