The Witness Box

Commenting on expert evidence, economic damages, and interesting developments in injury, wrongful death, business torts, discrimination, and wage and hour lawsuits

Friday, January 26, 2007

What would Daubert say about those damages? (continued from 2.25.2007)

Here is are four things to think about (and documents to collect) to begin an analysis of the dairy company's lost profits in the the business interruption lawsuit (see 2.25.2007 post).

1. Daily production volumes for the 60 days before, the day of, and 60 days after the incident in the year of the incident and a year before the incident.

[Reason: allows the analyst to see if the company really incurred a lost production do to contimination or were they able to scale up production in other areas?]

2. A list of and documentation of any specific orders, such as copies
of purchase orders or contracts (including requirements contracts),
that went unfilled as a result of the contamination

[Reason: Was the company pre-selling orders or did they make the products and then sell and market them after they were produced? Can be a big factor]

3. How long was the plant production shut down to locate and clean up the contamination?

4. What is your typical production in a day? Does this fluctuate throughout the day?

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1 Comments:

  • At 10:05 AM, Anonymous Rick Bosworth said…

    You may want to consider collecting more than 60 days of data, pre and post. My underlying concern here specifically is the question: is there any seasonality to the business? If so, that would need to be factored into the analysis: ie, is the post-incident findings convoluted with expected seasonality (reduction) in sales / output?

    Food for thought. Pun unintended.

     

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