Part 1 discussed the Sales Projections (But-For) Approach to
the quantification of economic damages and provided areas where the
cross-examiner can discredit plaintiff's lost-profits damages
expert. Part 2 discusses two other generally-accepted methodologies
and identifies the various areas for cross-examination of
plaintiff's expert.
As noted in Part 1, plaintiff's expert must support a
reasonable approach to the quantification of economic damages so
that proof can be made to demonstrate to the court that the losses
have been quantified with reasonable certainty or reasonable
probability. Exactitude is not required.
Before-and-After Approach
This approach is generally best suited to a business having an
established track record of operations or pattern of activity. It
compares actual (adversely-affected) operating results during the
damage period to normalized, but-for results. Adopting this
approach, the expert estimates, or extrapolates, plaintiff's
but-for
