KW Economics prepares lost profits analysis for fraud and embezzlement cases venued in Guam: what the loss claim consists of, the records that drive it, and a present value built to Guam damages rules and venues. Plaintiff and defense.
Beyond the amounts taken, a fraud or embezzlement can starve a business of working capital, cause defaults, or interrupt operations, and those consequential losses can exceed the direct loss. The economist quantifies the lost profits from the business's financial records, links each element to the diversion with the causal chain explained, separates the effect of the fraud from market conditions and other causes, and presents the consequential loss alongside the amounts traced so the two are not confused. Interest, penalties, and the cost of replacement borrowing are included where the records support them.
Lost profits and related commercial damages for contract, business-tort, and business-interruption matters. The analysis builds the but-for revenue and cost path from the company's own history, its market, and the terms of the disputed relationship, links each claimed loss to the conduct at issue, addresses mitigation, and reasons through the period of loss so the damages figure answers the causation question as well as the amount.
The direct loss is usually the amount traced through the records, and its size depends on how long the scheme ran and how far back the records permit reconstruction. Consequential losses can exceed the direct loss when the diversion starved a business of working capital or caused a default. Where the funds were used to acquire assets, tracing to those assets can support recovery from the assets themselves, which changes the practical exposure. The analysis states the amounts by year and by method so that partial findings and limitations are visible.
Guam's rules of evidence follow the federal model for expert testimony: the court asks whether the economist is qualified, whether the opinion rests on sufficient facts and reliable principles and methods, and whether those methods were reliably applied to the case. An economic damages report answers that inquiry by naming its data sources and tying each input to the record.
Highest court: Supreme Court of Guam.
Federal venues: District Court of Guam.
Guam reduces recovery in proportion to the plaintiff's share of fault in a negligence-based claim, and claims against the government proceed under a separate claims act with its own procedures. The treatment of prejudgment interest on liquidated and unliquidated sums follows Guam's own statutes and case law, which counsel confirm for the specific claim, so the report separates the sums that were due from the amounts that had to be projected. Any limit on economic damages under a particular statute is likewise for counsel to confirm, and the report states each loss as of a fixed date so it can be adjusted to whichever rules apply.
We issue the final report and provide deposition and trial testimony and rebuttal of opposing damages models.
Beyond the amounts taken, a fraud or embezzlement can starve a business of working capital, cause defaults, or interrupt operations, and those consequential losses can exceed the direct loss. The economist quantifies the lost profits from the business's financial records, links each element to the diversion with the causal chain explained, separates the effect of the fraud from market conditions and other causes, and presents the consequential loss alongside the amounts traced so the two are not confused. Interest, penalties, and the cost of replacement borrowing are included where the records support them.
Guam's rules of evidence follow the federal model for expert testimony: the court asks whether the economist is qualified, whether the opinion rests on sufficient facts and reliable principles and methods, and whether those methods were reliably applied to the case. An economic damages report answers that inquiry by naming its data sources and tying each input to the record. Fraud and Embezzlement cases venued in Guam are heard in the Superior Court of Guam (General jurisdiction trial court for local civil and criminal matters), with final appeals to the Supreme Court of Guam. Matters within federal jurisdiction proceed in the District Court of Guam.
Guam reduces recovery in proportion to the plaintiff's share of fault in a negligence-based claim, and claims against the government proceed under a separate claims act with its own procedures. The treatment of prejudgment interest on liquidated and unliquidated sums follows Guam's own statutes and case law, which counsel confirm for the specific claim, so the report separates the sums that were due from the amounts that had to be projected. Any limit on economic damages under a particular statute is likewise for counsel to confirm, and the report states each loss as of a fixed date so it can be adjusted to whichever rules apply. 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 Guam rules to a documented figure.
Request a consultation on Lost Profits or call (201) 343-0700. Plaintiff and defense counsel.