KW Economics prepares business valuation for commercial contract dispute cases venued in Maine: what the loss claim consists of, the records that drive it, and a present value built to Maine damages rules and venues. Plaintiff and defense.
A contract breach can permanently impair a business or end it, and when it does the measure of loss shifts from lost profits over a period to the diminished value of the business itself. The economist values the business before and after the breach under a consistent standard and approach, isolates the change attributable to the conduct at issue from market conditions and other causes, and coordinates the valuation with any lost profits claim so the same loss is not counted twice. The report explains which measure applies to which period and why.
Valuation of closely held businesses and ownership interests for shareholder and partnership disputes, divorce, estate and gift matters, and buy-sell disagreements. The work applies the income, market, and asset approaches under the standard of value that governs the matter, addresses discounts for lack of control and marketability where they apply, and documents every input so the conclusion can be tested on cross-examination.
The size of the claim depends on the contract's remaining term, the profit margin the business would have realized, and how much of the lost volume was or could have been replaced. Incremental cost treatment is the usual battleground: whether a given cost would have been avoided when the revenue disappeared changes the margin and therefore the loss. For a new venture or a contract without a performance history, the reasonableness of the projected revenue is the central dispute, and the period over which lost profits are claimed is scrutinized against the contract's terms and the market.
Maine courts ask whether the economist is qualified by training and experience, whether the opinion rests on a reliable foundation, and whether it will help the fact finder, under the state's own reliability inquiry. A damages report meets that inquiry by showing the published basis for each assumption and its fit with the record.
Highest court: Maine Supreme Judicial Court. Court system: courts.maine.gov.
Federal venues: District of Maine.
Maine reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share equals or exceeds the defendants'. Prejudgment interest runs from the filing of the notice of claim or the complaint in civil actions generally, liquidated or not, so the interval between filing and judgment is part of the economic picture. Economic damages are not subject to a general statutory limit, and the report separates past from future amounts so the interest computation can follow.
We issue the final report and provide deposition and trial testimony and critique of opposing valuation reports.
A contract breach can permanently impair a business or end it, and when it does the measure of loss shifts from lost profits over a period to the diminished value of the business itself. The economist values the business before and after the breach under a consistent standard and approach, isolates the change attributable to the conduct at issue from market conditions and other causes, and coordinates the valuation with any lost profits claim so the same loss is not counted twice. The report explains which measure applies to which period and why.
Maine courts ask whether the economist is qualified by training and experience, whether the opinion rests on a reliable foundation, and whether it will help the fact finder, under the state's own reliability inquiry. A damages report meets that inquiry by showing the published basis for each assumption and its fit with the record. Commercial Contract Dispute cases venued in Maine are heard in the Superior Court (General jurisdiction; civil cases, jury trials in major criminal cases), with final appeals to the Maine Supreme Judicial Court. Matters within federal jurisdiction proceed in the District of Maine.
Maine reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share equals or exceeds the defendants'. Prejudgment interest runs from the filing of the notice of claim or the complaint in civil actions generally, liquidated or not, so the interval between filing and judgment is part of the economic picture. Economic damages are not subject to a general statutory limit, and the report separates past from future amounts so the interest computation can follow. The report presents past and future amounts separately, states every rate and table with its source, and shows the result under the alternatives the other side is likely to argue, so counsel can apply the Maine rules to a documented figure.
Request a consultation on Business Valuation or call (201) 343-0700. Plaintiff and defense counsel.