The starting point for a quantification of damages report is to understand whether there has been an economic loss which can be attributed to the relevant cause of action. This will involve gaining an understanding of the business or income producing activity and assessing income levels pre and post the incident which gave rise to the cause of action.
“The general principle governing the assessment of compensatory damages in both contract and tort is that the plaintiff should receive the monetary sum which, so far as money can, represents fair and adequate compensation for the loss or injury sustained by reason of the defendant’s wrongful conduct.”
Quantifications of damages require adequate skill to gather and infer results from the relevant industry, market, financial and economic data available. Through this data, valuation techniques can be applied to arrive at the determination of a fair and true value for the damages suffered that the court would then be petitioned to liquidate.
In disputes involving a significant impact on a business, quantification of damages is likely to relate to the value of the business itself. Given the significance of brand, IP value and goodwill to business value then any impact on such value is likely to be significant as well.
Quantification of damages will require an assessment of what would have happened but for the wrongful act, compared with what actually happened. It will also require comparison between: (i) future events that would have been expected to occur; with (ii) future events that are expected to occur.
Lee Goldstein from BRV is frequently instructed as an expert witnesses or adviser for quantification of damages for dispute resolution in legal matters. This often draws on his expertise in valuing brands, valuing businesses, IP valuation, valuing intangible assets, copyright valuation, patent valuation, valuing software, technology valuation and valuing other ownership interests.
Should you wish to discuss any of the above issues with Lee, please contact him on
1800 566 872 or info@brv.com.au