Economics for the real world

Economic Damages

Running a business has its dangers. An employee files a wrongful termination suit against your business. Your business faces unfair competitive practices by another company, resulting in lost revenue. One of your suppliers reneges on a contract and doesn't deliver the goods. An insurance company refuses to pay for your claim. A malpractice suit is filed against your medical services company. Any of these events can be detrimental to a person or business and need to be handled with utmost care. It is important that you have a good team of attorneys and experts on your side.

EEC works with attorneys to estimate the economic damages incurred and provides expert witness testimony in regard to these damages estimates. EEC also reviews and critiques damages reports of experts on the opposing side of the case. EEC has considerable experience working with both plaintiffs and defendants. With our years of experience in the area of economic damages, our use of peer-approved methodology and our testimony experience, EEC provides an integral tool in economic damages cases. EEC provides assistance in a variety of personal and business loss cases with the most common of these cases discussed below:

Personal Loss

Wrongful termination cases usually involve a party who feels the termination was without cause. A good example of a wrongful termination case is someone fired in retaliation for reporting a safety problem on the worksite. Loss in these cases includes loss of income and benefits following termination and possible loss of future income if the claimant cannot find comparable employment.

Discrimination cases vary; some may be part of wrongful termination while others involve a person still employed with the Defendant. An example is an employee who is not promoted within a company due to the employee's race and gender. These cases involve estimates of income/benefits that would have been received had the promotion occurred.

Wrongful death cases are usually filed by the decedent's family or estate. An example is a person who is misdiagnosed and dies from an illness that goes untreated. Economic loss in this case involves estimates of income that would have been earned during the decedent's lifetime as well as estimates of the dollar value of the decedent's portion of household duties.

Personal injury cases occur after an event leaves the Plaintiff either temporarily or permanently disabled. A person's injuries may result in a lower-paying position as the person is no longer able to perform his or her previous duties. The difference in what the Plaintiff could have earned had he/she continued employment and the earnings from his/her new position make up the economic loss in this case.

Business Loss

Breach of contract/contract dispute cases occur when one side in a contract breaks the rules covered in the contract. For example, a supplier may provide inferior goods to the company, resulting in a delay of production or production of defective products. Loss of income that the business could have received is the most likely claim in this type of case.

Unfair competition could include copyright infringement and other types of cases that result in limiting a business' ability to complete. An example is a business that is forced into bankruptcy when its copyrighted product is copied and sold at a significantly reduced price. The loss of income resulting from this competition would be the focus of the economic loss case.

Business interruption cases result from an event that forces a business to slow or cease its normal operations, resulting in an income loss. These could be due to natural events such as floods and hurricanes, inappropriate actions of others, or other related events. For example, a business in a hurricane zone may suffer loss of income due to a storm. The damages to the business would be the income it would have received had the event not occurred.