Forensic Economics - Damage Analysis for Plaintiffs & Defendants
Analysis and Expert Witness Testimony For:
- Personal Injury
- Wrongful Death
- Wrongful Termination
- Lost Business Profits
- Wage Discrimination
- Insurance Defense
- Commercial Litigation
- Breach of Contract
What is Forensic Economics?
According to the Statement of Ethical Principles and Principles of Professional Practice from the National Association of Forensic Economics (NAFE):
"Forensic economics is the scientific discipline that applies economic theories and methods to matters within a legal framework. Forensic economics covers, but is not limited to:
The calculation of pecuniary damages in personal and commercial litigation.
The analysis of liability, such as the statistical analysis of discrimination, the analysis of market power in antitrust disputes, and fraud detection.
- Other matters subject to legal review, such as public policy analysis, and business, property, and asset valuation.
How are PI and WD Analyses Performed?
The base report used in a presentation for the NACVA & CTI 2015 Annual Consultants' Conference. Title: "A Hands-On Workshop for Starting and Completing A Personal Injury Economic Damages Analysis"
According to The Journal of Forensic Economics website: "Forensic economics is the scientific discipline that applies economic theories and methods to the issue of pecuniary damages as specified by case law and legislative codes. Topics within forensic economics include:
- the analysis of claims involving persons, workers, firms, or markets for evidence concerning damage liability;
- the calculation of damages in personal and commercial litigation; and
- the development and use of generally accepted forensic economic methodologies and principles."
The estimation of economic damages in the context of a Personal Injury, Wrongful Death or a Wrongful Termination action is intended to measure the income producing capacity of an individual and the costs associated with maintaining them in the best possible condition. In the context of Business Lost Profits action, the estimation of economic damages is intended to act as a remedy to allow a business to recover when a legal wrong or “bad act” has caused it to lose profits.
Economic Damage Analyses are performed for many reasons, but usually involve the filing of a lawsuit, for these reasons:
- Business transactions gone wrong
- Family disputes over the division of inheritances
- Loss of customers due to unfair competition, libel, or slander
- Medical Malpractice or Accidents causing permanent Personal Injury or a Wrongful Death
- Patent, Copyright, or Trademark infringements
- Wrongful Termination for age, sex, race
In a Personal Injury or Wrongful Death action, the Forensic Economist can:
- Identify all economic losses
- Determine past and future income losses
- Determine the value of fringe benefits
- Adjust the loss for personal consumption or support factors
- Measure the replacement value of uncompensated household services for income earners and homemakers
- Convert the Life Care Plans of medical and rehabilitation experts into present values
- Select the proper discount rate and convert all future losses to their present values
- Prepare a report detailing the value of all losses
- Prepare a rebuttal report of your opponent's expert
- Write questions for direct examination and depositions for himself and cross examination and deposition questions for the opposing expert
- Help you prepare a structured settlement or determine the value of an offered structure
- Present a complex topic in understandable language for a trier of fact