Selecting the right expert to calculate economic damages in a breach of contract claim can be critical in the success of an attorney’s case. The expert must be able to calculate damages resulting from a breach of contract and convey the story to a trier of fact in a manner that will make the attorney’s job easier. As CPAs, we can provide independent, objective expert opinions and consult on various issues in a case on an undisclosed basis.
What CPAs do in litigation
CPAs analyze financial information and other relevant data to help clients determine the existence and extent of damages associated with a particular set of facts and circumstances. These analyses are used to develop conclusions about the issues and form the basis of independently calculated economic damages opinions that are defensible in a court of law or another forum.
We are hired to assist in a variety of breach of contract claims:
- Employment disputes / Covenants not to compete
- Sales contracts
- Insurance losses
- Business interruption
- Franchise agreements
- Construction contracts
- Distributor agreements
- Lending agreements
We provide additional services beyond the financial analyses expected of CPAs to assist with the breach of contract claim:
- Assistance with document requests
- Development of deposition questions
- Support with responses to interrogatories
- Review correspondence/non-financial information
FSS assists attorneys in anticipated litigation
Forensic Strategic Solutions provides the analyses that attorneys can use to settle a breach of contract claim prior to filing a lawsuit. If FSS is brought in early to assist, we can assess the facts of the case from a financial perspective to improve the efficiency of the damages calculation. We determine if quantifiable damages are available for recovery and provide preliminary estimates of a reasonable range. We also identify critical information required to form a more focused damages calculation. Setting expectations early can benefit a breach of contract claim by improving chances for a reasonable settlement or determining that trial is the likely remedy.
Related reading: Calculating Economic Damages: It’s About Far More Than The Math
FSS serves attorneys in litigation
We can be retained as a consulting expert or a testifying expert. As consulting experts, our role is usually never disclosed, so our work is generally not discoverable. Attorneys can view us as trusted advisors to provide strategic advantages throughout all phases of litigation.
As testifying experts, we will be put forth as your expert witness in the ongoing litigation, and all of our work is usually discoverable. In this role, we will advocate for our independent opinion and not for the attorney’s client. Litigation work can be complex, involving high stakes, and the FSS team understands what it takes to provide attorneys with the highest level of professional service in that environment.
Reasons to hire FSS
- Economic damages analyses and forensic investigations involve complex financial issues. FSS has professionals with the skills to explain these subjects in a clear and concise manner so a trier of fact can understand clearly as we present our opinions.
- FSS has credentialed professionals with the knowledge, experience, education, and training to provide credible opinions and defend them under intense scrutiny.
- Our professionals use some of the most advanced technology to develop our work product. This not only enables us to be highly efficient, but we are then able to use that technology to aid in telling the story to the trier of fact.
When should an attorney hire FSS?
The earlier we are brought into a case, the greater the likelihood that we will be able to proceed with the highest level of efficiency. While cost is usually a consideration, early involvement reduces wasted time and the pursuit of fruitless theories, and generally results in lower fees to the client. We are able to assist managing the process from the outset, as opposed to dashing to the finish line with a reduced ability to leverage.
FSS manages fees for the client by:
- Implementing budgets and workplans
- Performing work in phases, allowing the client to control spending
- Billing on a regular basis to avoid any surprises
Forensic Strategic Solutions has substantial experience working with attorneys and clients in economic damages calculation in a breach of contract claim. To learn more about our work, Contact us for a consultation, or visit our practice area page, lost profits and damages.
This blog was updated on 3/11/2022.