Commercial Contract Dispute Economic Damages Expert in Pennsylvania

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 Pennsylvania: the components the loss claim consists of, the records that drive them, and a present value built to Pennsylvania'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.

Pennsylvania courts and expert standards

Pennsylvania courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and whether the economist is qualified by training and experience to apply it. The methods of forensic economics for lost earnings, worklife, and present value are published and long used, so the examination of a damages report usually turns on its inputs and their support in the record.

Where these cases are heard

Highest court: Supreme Court of Pennsylvania. Federal venues: E.D. Pa., M.D. Pa., W.D. Pa. Court system: pacourts.us.

Damages framework

Pennsylvania reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share exceeds the combined fault of the defendants. Interest on a liquidated contract sum runs as of right from the date it was due, and the civil rules add delay damages to bodily injury and death awards. Economic damages are not subject to a general statutory limit, so the report states each loss as of a fixed date and separates the sums that were due from the amounts that had to be projected.

How the analysis is built

The same four steps apply to a commercial contract dispute case venued in Pennsylvania; 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.

Experts serving Pennsylvania

Attorney guides for commercial contract dispute cases

Other case types in Pennsylvania

Frequently asked: commercial contract dispute cases in Pennsylvania

Which Pennsylvania courts hear commercial contract dispute cases?

Commercial Contract Dispute cases venued in Pennsylvania are heard in the Court of Common Pleas (General jurisdiction; 60 judicial districts; civil, criminal, family, and orphans' court divisions). Final appeals run to the Supreme Court of Pennsylvania. Matters within federal jurisdiction proceed in the United States District Courts for the Eastern District of Pennsylvania, Middle District of Pennsylvania, and Western District of Pennsylvania.

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

Pennsylvania reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share exceeds the combined fault of the defendants. Interest on a liquidated contract sum runs as of right from the date it was due, and the civil rules add delay damages to bodily injury and death awards. Economic damages are not subject to a general statutory limit, so the report states each loss as of a fixed date and separates the sums that were due from the amounts that had to be projected. Pennsylvania courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and whether the economist is qualified by training and experience to apply it. The methods of forensic economics for lost earnings, worklife, and present value are published and long used, so the examination of a damages report usually turns on its inputs and their support in the record.

More questions about commercial contract dispute analysis

References

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