KW Economics prepares lost profits analysis for partnership and shareholder dispute cases venued in Hawaii: what the loss claim consists of, the records that drive it, and a present value built to Hawaii damages rules and venues. Plaintiff and defense.
In a partnership or shareholder dispute a lost profits claim arises when one owner's conduct, such as diverting customers, competing with the business, or excluding a partner from its earnings, reduced the profits the business or the excluded owner would otherwise have received. The economist establishes the but-for profits from the company's history and market, links the shortfall to the conduct at issue, quantifies diverted revenue from the ledger and customer records, and presents the owner's share of the lost profits by year. The analysis is coordinated with any valuation of the interest so the same loss is not counted in both.
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 valuation date and the standard of value control the result: a fair value standard may exclude the minority and marketability discounts that a fair market value standard applies, and the gap between the two can be substantial for a minority interest in a closely held company. Normalizing adjustments to owner compensation and related-party dealings often decide whether the business shows earnings to value at all. Where the claim includes diverted profits, the amount depends on how far back the records permit reconstruction and on whether the business's actual results can be separated from market conditions.
Hawaii courts ask whether an expert opinion is relevant and reliable and whether it will help the jury, treating the reliability factors the federal courts use as helpful rather than required and not insisting on general acceptance; the witness is qualified by training and experience. An economic damages report is examined on whether its assumptions have a published basis and fit the record.
Highest court: Hawaii Supreme Court. Court system: courts.state.hi.us.
Federal venues: District of Hawaii.
Hawaii reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share exceeds the combined fault of the defendants. Prejudgment interest is discretionary, so the report separates past from future amounts and supplies the schedule the court would need to award it. Economic damages are not subject to a general statutory limit outside specific statutory claims.
We issue the final report and provide deposition and trial testimony and rebuttal of opposing damages models.
In a partnership or shareholder dispute a lost profits claim arises when one owner's conduct, such as diverting customers, competing with the business, or excluding a partner from its earnings, reduced the profits the business or the excluded owner would otherwise have received. The economist establishes the but-for profits from the company's history and market, links the shortfall to the conduct at issue, quantifies diverted revenue from the ledger and customer records, and presents the owner's share of the lost profits by year. The analysis is coordinated with any valuation of the interest so the same loss is not counted in both.
Hawaii courts ask whether an expert opinion is relevant and reliable and whether it will help the jury, treating the reliability factors the federal courts use as helpful rather than required and not insisting on general acceptance; the witness is qualified by training and experience. An economic damages report is examined on whether its assumptions have a published basis and fit the record. Partnership and Shareholder Dispute cases venued in Hawaii are heard in the Circuit Court (General jurisdiction; larger civil cases, felonies, family court division), with final appeals to the Hawaii Supreme Court. Matters within federal jurisdiction proceed in the District of Hawaii.
Hawaii reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share exceeds the combined fault of the defendants. Prejudgment interest is discretionary, so the report separates past from future amounts and supplies the schedule the court would need to award it. 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 Hawaii rules to a documented figure.
Request a consultation on Lost Profits or call (201) 343-0700. Plaintiff and defense counsel.