RS Forensic is frequently appointed as independent expert to quantify loss of profits / consequential loss claims. We are instructed to act on behalf of claimants and defendants. We are also regularly instructed in the early stages of a dispute to act in an advisory capacity, for example to provide the claimant with an early assessment of quantum or to assess the strengths and weaknesses of a potential claim.
The need to quantify a loss of profits / consequential loss arises in a wide range of situations including:
- Shareholder, partnership & franchise disputes
- Contractual disputes
- Business interruption claims
- Personal injury claims
- Mis-selling claims against financial institutions
The calculation of a loss of profits / consequential loss is rarely straight forward due to the large number of internal and external variables that can be involved. We work closely with our clients and instructing solicitors to understand the nature and basis of the claim and the claimant’s underlying business. We also focus on understanding the circumstances resulting in the alleged loss of profits to ensure that the losses being claimed flow directly from the actions of the defendant.
We review and identify gaps in the disclosed information and discuss how these can be addressed with our instructing solicitors and the client as necessary. Where relevant information is not available to fill the gaps, we identify and conclude on reasonable assumptions to enable us to quantify the loss of profits or provide a range of potential outcomes in order to assist the court.
When calculating a loss of profits, we build robust financial models that can cope with a range of factual scenarios and assumptions as necessary. Our clients find this approach to be extremely valuable, especially during the settlement process. This also enables us to undertake sensitivity analysis, particularly where the facts of the case are disputed.
In some cases a lost opportunity may result in a permanent reduction in the value of the claimant’s business. In such circumstances, we use our experience of business valuations to quantify the loss in business value as a result of the lost opportunity.
We understand that litigation is very disruptive and clients want to get back to business as usual as soon as possible. Whether we are engaged to provide early stage advice or a final expert report, our aim is always to provide objective, independent advice that ultimately assists the court and adds value to our clients.
Should your loss of profits / consequential loss claim reach court, we are able to provide an expert report which is compliant with the civil procedure rules and relevant practice directions and give expert testimony.
Typically instructed to provide independent and objective expert witness and advisory services in relation to matters involving owner-managed SME businesses.
Early stage settlement for breach of contract
Swap consequential loss
Arbitration – breach of distribution agreement
Assessing merits of a claim for mediation
Losses arising from breach of concession agreement