KW Economics prepares rebuttal analysis for commercial contract dispute cases venued in New York: what the loss claim consists of, the records that drive it, and a present value built to New York 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.
New York courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and, separately, whether the economist applied it reliably to the facts of the case; qualification rests on training and experience. Forensic economic methods for lost earnings, household services, 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.
Highest court: Court of Appeals. Court system: iapps.courts.state.ny.us.
Federal venues: Southern District of New York, Eastern District of New York, Northern District of New York, Western District of New York.
New York 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 contract claim from the earliest date the damages were incurred and in a wrongful death action from the date of death, while a personal injury award carries interest only from the verdict. Economic damages are not subject to a general statutory limit, and larger future damage awards are converted to structured payments by the court, so the report presents the future stream year by year as well as in present value.
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 New York; 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.
New York courts ask whether the methodology behind an expert opinion is generally accepted in the relevant professional community and, separately, whether the economist applied it reliably to the facts of the case; qualification rests on training and experience. Forensic economic methods for lost earnings, household services, 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. Commercial Contract Dispute cases venued in New York are heard in the Supreme Court (General jurisdiction trial court for major civil cases and felonies; one in each county), the County Court (Outside New York City; felonies and mid-sized civil cases), and the Court of Claims (Claims against New York State), with final appeals to the Court of Appeals. Matters within federal jurisdiction proceed in the Southern District of New York, Eastern District of New York, Northern District of New York, and Western District of New York.
New York 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 contract claim from the earliest date the damages were incurred and in a wrongful death action from the date of death, while a personal injury award carries interest only from the verdict. Economic damages are not subject to a general statutory limit, and larger future damage awards are converted to structured payments by the court, so the report presents the future stream year by year as well as in present value. 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 New York rules to a documented figure.
Request a consultation on Rebuttal or call (201) 343-0700. Plaintiff and defense counsel.