KW Economics prepares rebuttal analysis for commercial contract dispute cases venued in Michigan: what the loss claim consists of, the records that drive it, and a present value built to Michigan damages rules and venues. Plaintiff and defense.
A lost profits report is tested on causation, incremental cost treatment, the period of loss, and the discount rate. The economist checks whether the but-for revenue rests on pre-dispute projections and the company's history or on assumptions made for the claim, whether the costs deducted are the incremental costs of earning that revenue or a fraction of fixed costs, whether the loss period is bounded by the contract and the market, whether mitigation was credited, and whether the discount rate reflects the risk of the earnings stream. Each correction is quantified so counsel can see which assumptions carry the number.
Critique of an opposing economic damages, valuation, or forensic accounting report for plaintiff or defense counsel. The review tests the assumptions, data sources, discount rates, worklife and life expectancy inputs, growth rates, mitigation treatment, and arithmetic behind the opposing number, identifies the errors that matter, and quantifies how the conclusion changes when they are corrected. The result supports cross-examination, a rebuttal report, or a motion directed at the reliability of the opinion.
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.
Michigan courts require the trial judge to act as gatekeeper for expert testimony, asking whether the economist is qualified, whether the opinion rests on sufficient facts and reliable principles and methods, and whether those methods were applied reliably to the case. A damages report meets that inquiry by naming the published source behind every assumption and tying each to the record.
Highest court: Michigan Supreme Court. Court system: courts.michigan.gov.
Federal venues: Eastern District of Michigan, Western District of Michigan.
Michigan reduces a negligence-based award by the plaintiff's share of fault, and a plaintiff whose share exceeds half loses noneconomic damages while economic damages are only reduced. Interest on a money judgment runs from the filing of the complaint in civil actions generally, and the court reduces future damages to present value under a statutory formula, so the report presents the future stream in the form that formula requires. Economic damages are not subject to a general statutory limit outside specific statutory claims.
We issue a rebuttal report where one is disclosed and provide deposition and trial testimony, cross-examination outlines, and support for motions directed at the opinion.
The same four steps apply to a commercial contract dispute case venued in Michigan; the damages framework above decides which components enter the total. Establish the but-for revenue from the contract terms, the pre-dispute projections, and the business's own history. Identify the incremental costs that would have been incurred to earn that revenue so that only the lost margin is claimed. Analyze actual results after the breach to separate the effect of the breach from market conditions and other causes, and credit mitigation revenue. Bring past lost profits forward and discount future lost profits at a stated rate that reflects the risk of the earnings stream.
Michigan courts require the trial judge to act as gatekeeper for expert testimony, asking whether the economist is qualified, whether the opinion rests on sufficient facts and reliable principles and methods, and whether those methods were applied reliably to the case. A damages report meets that inquiry by naming the published source behind every assumption and tying each to the record. Commercial Contract Dispute cases venued in Michigan are heard in the Circuit Court (General jurisdiction; larger civil cases, felonies, domestic relations), with final appeals to the Michigan Supreme Court. Matters within federal jurisdiction proceed in the Eastern District of Michigan and Western District of Michigan.
Michigan reduces a negligence-based award by the plaintiff's share of fault, and a plaintiff whose share exceeds half loses noneconomic damages while economic damages are only reduced. Interest on a money judgment runs from the filing of the complaint in civil actions generally, and the court reduces future damages to present value under a statutory formula, so the report presents the future stream in the form that formula requires. Economic damages are not subject to a general statutory limit outside specific statutory claims. 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 Michigan rules to a documented figure.
Request a consultation on Rebuttal or call (201) 343-0700. Plaintiff and defense counsel.