Commercial Contract Dispute Economic Damages Expert in Washington

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

Washington courts and expert standards

Washington 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, leaving disputes over the inputs to cross-examination. The methods of forensic economics are published and long used, so the examination of a damages report usually turns on its assumptions and their support in the record.

Where these cases are heard

Highest court: Washington Supreme Court. Federal venues: W.D. Wash., E.D. Wash. Court system: courts.wa.gov.

Damages framework

Washington applies pure comparative fault in a negligence-based claim, reducing the award in proportion to the plaintiff's share. Prejudgment interest is generally limited to liquidated sums, such as an unpaid contract balance, and not awarded on unliquidated damages. Statutory limits on noneconomic damages have been held unconstitutional and economic damages are not subject to a general statutory limit, so the economist's figure enters the case at its full present value, with the liquidated components identified separately.

How the analysis is built

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

Frequently asked: commercial contract dispute cases in Washington

Which Washington courts hear commercial contract dispute cases?

Commercial Contract Dispute cases venued in Washington are heard in the Superior Court (General jurisdiction; one in each of 39 counties; all civil, criminal, and domestic matters). Final appeals run to the Washington Supreme Court. Matters within federal jurisdiction proceed in the United States District Courts for the Western District of Washington and Eastern District of Washington.

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

Washington applies pure comparative fault in a negligence-based claim, reducing the award in proportion to the plaintiff's share. Prejudgment interest is generally limited to liquidated sums, such as an unpaid contract balance, and not awarded on unliquidated damages. Statutory limits on noneconomic damages have been held unconstitutional and economic damages are not subject to a general statutory limit, so the economist's figure enters the case at its full present value, with the liquidated components identified separately. Washington 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, leaving disputes over the inputs to cross-examination. The methods of forensic economics are published and long used, so the examination of a damages report usually turns on its assumptions and their support in the record.

More questions about commercial contract dispute analysis

References

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