KW Economics prepares lost profits analysis for partnership and shareholder dispute cases venued in Maine: what the loss claim consists of, the records that drive it, and a present value built to Maine 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.
Maine courts ask whether the economist is qualified by training and experience, whether the opinion rests on a reliable foundation, and whether it will help the fact finder, under the state's own reliability inquiry. A damages report meets that inquiry by showing the published basis for each assumption and its fit with the record.
Highest court: Maine Supreme Judicial Court. Court system: courts.maine.gov.
Federal venues: District of Maine.
Maine reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share equals or exceeds the defendants'. Prejudgment interest runs from the filing of the notice of claim or the complaint in civil actions generally, liquidated or not, so the interval between filing and judgment is part of the economic picture. Economic damages are not subject to a general statutory limit, and the report separates past from future amounts so the interest computation can follow.
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.
Maine courts ask whether the economist is qualified by training and experience, whether the opinion rests on a reliable foundation, and whether it will help the fact finder, under the state's own reliability inquiry. A damages report meets that inquiry by showing the published basis for each assumption and its fit with the record. Partnership and Shareholder Dispute cases venued in Maine are heard in the Superior Court (General jurisdiction; civil cases, jury trials in major criminal cases), with final appeals to the Maine Supreme Judicial Court. Matters within federal jurisdiction proceed in the District of Maine.
Maine reduces a negligence-based award by the plaintiff's share of fault and bars recovery once that share equals or exceeds the defendants'. Prejudgment interest runs from the filing of the notice of claim or the complaint in civil actions generally, liquidated or not, so the interval between filing and judgment is part of the economic picture. Economic damages are not subject to a general statutory limit, and the report separates past from future amounts so the interest computation can follow. 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 Maine rules to a documented figure.
Request a consultation on Lost Profits or call (201) 343-0700. Plaintiff and defense counsel.