Contract disputes
Lost profits from breach, supplier failures, and contract terminations.
Business Interruption
Lost profits, increased costs, and consequential damages from operational disruptions.
A forensic economist quantifies the lost profits and increased costs that follow an operational disruption.
Each business has its own cost structure, revenue model, and competitive environment, so a defensible damages figure separates revenue that would have been earned from the costs that would have been incurred to earn it. The recoverable measure of damages depends on the contract, the policy, or the legal theory at issue.
Types of cases include
Property damage
Operational disruption from fire, flood, equipment loss, and casualty events.
Insurance claims
Documentation of business interruption losses for coverage claims.
Regulatory action
Lost profits from forced closures, recalls, and regulatory orders.
What we provide
Independent economic analysis available to plaintiff or defense counsel.
Our work establishes a but-for baseline from the business's pre-event financial records and industry data, projects the revenue path that would have followed absent the disruption, and adjusts for variable costs that were not incurred during the interruption. Where appropriate, the analysis also addresses extra expenses, mitigation costs, and any residual losses through the recovery period after operations resume. The look-back period, the choice of comparable benchmarks, and the treatment of fixed versus variable costs depend on the nature of the business and the available records.
Reports are written to satisfy FRCP 26(a)(2)(B), supported by deposition and trial testimony as needed. Closely related work appears on the business-valuation page.
Note: We do not provide legal advice. Retaining counsel identifies the applicable legal framework; we apply accepted economic methods to quantify losses.
Common questions
What counsel asks before retaining an economic expert.
What is the difference between lost revenue and lost profits in a business interruption claim?
Lost revenue is the total income a business failed to earn during the interruption, while lost profits represent revenue minus the costs the business would have incurred to generate that revenue. The recoverable measure of damages depends on the applicable legal standard. We analyze the cost structure of the business to determine which costs continued during the interruption and which were avoided, so the damages figure reflects the actual economic loss.
How far back does a forensic economist look when establishing a baseline for lost profits?
The look-back period depends on the nature of the business and the availability of reliable data. We select a period sufficient to identify relevant trends, seasonal patterns, and growth trajectories. For businesses with limited history, other data sources may supplement the available records.
What documents should I gather for a business interruption damages analysis?
Relevant documents may include, but are not limited to, financial statements, tax returns, bank records, sales data, and contracts or leases. The specific records needed depend on the nature of the business and the damages being analyzed. We work with counsel to identify the records most relevant to each matter.
Can business interruption damages include losses during the recovery period after operations resume?
In some cases, yes. A business may not return to pre-interruption performance levels immediately after resuming operations. Whether recovery period losses are recoverable, and how they are measured, depends on the facts and the applicable law.
Where do your economists practice?
Our economists are based in Wisconsin and California. We have particular depth of experience in Wisconsin, Minnesota, Iowa, Illinois, and California, but regularly accept engagements throughout the United States. We provide expert economic analysis nationwide. Logan Kelly has provided expert testimony in federal and state courts across multiple jurisdictions; both economists are available for deposition and trial as needed.
Practice scope Federal and state courts nationwide.