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, November 02, 2007

Economic damages testimony at an employment arbitration

Presenting economic damages testimony at a arbitration is bit different from doing the same at a trial. At an arbitration there is no jury. Instead it is more like a bench trial in a more informal setting, usually an attorneys office. Plus the time allotted for economic damage testimony is usually a lot shorter.

Most importantly, since the trier of fact is not a jury, there is little need to go thru a lot of the areas that you would with a jury trial. For instance, the arbitrator is more than likely familiar with the concept of discounting. Just telling them what the discount factor is (and reinforcing that a high discount factor means low damages and vice versa is usually enough.)

Here is one line of questions (based on recent economic damages testimony in an employment termination case)

1. Briefly introduce the economists to the arbitrator

2. What were you asked to do? At this point, unlike during the writing of the report, the response by the economist will be more pointed and direct.

3. In performing your economic analysis of the plaintiff's economic damages, what did you review? For the sake (and sanity) of all involved, the economist's response should be general but all inclusive. For example, "I reviewed several classes of documents. These included, pleadings, payroll records, tax returns, and retirement information"

4. Generally can you describe what you did? This is short and sweet. "I compared the income the plaintiff was making prior to her termination to that which she is currently making" Briefly describe what the before and after termination packages included.

5. Quickly go more into detail in what was done.

- Hit earnings, future increases, what the discount factor was that was used.
- Explain what was NOT included.

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