Building a supported but-for analysis
A commercial damages estimate compares the observed economic position with a supported estimate of what would have occurred absent the conduct at issue. The choice of comparison matters. Envision Economics examines business records, market evidence, and alternative explanations before selecting an analytical approach.
Lost profits and contract damages
A claim for lost revenue is not by itself a measure of lost profits. Relevant analysis considers the sales that would have occurred, associated costs, the timing of the loss, and the firm’s capacity to earn those profits. In a contract dispute, the economic assessment also depends on the performance counsel identifies as relevant and the commercial circumstances surrounding the agreement.
Causation and alternative explanations
Changes in profitability may reflect market conditions, competitive responses, business decisions, or other influences alongside the conduct alleged. An economic damages expert evaluates those possibilities and identifies where the evidence supports a conclusion and where assumptions remain necessary. Sensitivity analysis can show the consequences of reasonable changes in important inputs.
Competition, unjust enrichment, and related issues
Dr. Chapman’s experience includes antitrust damages and market analysis, breach of contract disputes, and unjust enrichment. His industry experience spans pharmaceuticals, medical devices, software, financial services, manufacturing, agriculture, and consumer products.
Relevant commercial litigation experience
In ABS Holdings / ABS Global v. KT / KTSAT, an International Chamber of Commerce arbitration, Dr. Chapman’s consulting work included analysis of damages associated with alleged contract breaches involving the sale and ongoing operations of a satellite. His litigation CV describes further contract, antitrust, and commercial assignments.
Questions about commercial damages
What information helps evaluate a lost profits claim?
Useful materials commonly include historical financial statements, sales and cost records, budgets, contracts, and evidence about customers and competitors. The appropriate records depend on the theory of harm and the available comparison.
How does the analysis address uncertainty?
The analysis identifies material assumptions, examines supporting and contrary evidence, and can compare results under alternative inputs or scenarios. The goal is to make the basis and limits of the conclusion clear.