KW Economics prepares lost profits analysis for fraud and embezzlement cases venued in Puerto Rico: what the loss claim consists of, the records that drive it, and a present value built to Puerto Rico 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.
Puerto Rico'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. A damages report meets that inquiry by naming its sources and tying each assumption to the record, in the language the court requires.
Highest court: Supreme Court of Puerto Rico (Tribunal Supremo de Puerto Rico).
Federal venues: District of Puerto Rico.
Puerto Rico's civil-law system reduces recovery in proportion to the plaintiff's share of fault in a negligence-based claim. Interest can be imposed on the award when a party is found to have litigated with obstinacy, and interest on a sum owed under a contract follows the civil code's rules on delay, which counsel confirm for the specific claim. Private-party damages are not subject to a general statutory limit, so the report states each loss as of a fixed date and separates past from future amounts.
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.
Puerto Rico'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. A damages report meets that inquiry by naming its sources and tying each assumption to the record, in the language the court requires. Fraud and Embezzlement cases venued in Puerto Rico are heard in the Court of First Instance (Tribunal de Primera Instancia) (General jurisdiction trial court of the Commonwealth, organized into Superior and Municipal divisions; hears civil and criminal matters), with final appeals to the Supreme Court of Puerto Rico (Tribunal Supremo de Puerto Rico). Matters within federal jurisdiction proceed in the District of Puerto Rico.
Puerto Rico's civil-law system reduces recovery in proportion to the plaintiff's share of fault in a negligence-based claim. Interest can be imposed on the award when a party is found to have litigated with obstinacy, and interest on a sum owed under a contract follows the civil code's rules on delay, which counsel confirm for the specific claim. Private-party damages are not subject to a general statutory limit, so the report states each loss as of a fixed date and separates past from future amounts. 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 Puerto Rico rules to a documented figure.
Request a consultation on Lost Profits or call (201) 343-0700. Plaintiff and defense counsel.