Complex Economic Damages

Hemming Morse partners and professionals possess expertise in in the accounting, finance, economics, statistics, licensing, and business and asset valuation. Our professionals are also experienced and skilled in the development of damages models in commercial litigation and similar disputes, as well as providing credible, well-supported expert testimony at deposition and trial or arbitration hearings. Typically these analyses involve the analysis of damages resulted from alleged wrongful acts, with damages measured as lost profits, diminution in business value, out of pocket damages, or a reasonable royalty. Alternatively, other measures may be relevant, such as in a restitution calculation or quantifying unjust enrichment or defendant’s profits. Frequently it involves consideration and use of electronically stored information and large datasets, as well as deep analysis of a company’s industry and history, in the development of an estimate of the “but-for” world, calculation of incremental and saved costs, and consideration of the time value of money, discounting future profits and performing calculations of prejudgment interest.

Our partners and testifying experts utilize a hands-on approach to ensure clients receive robust, high-quality work product in the highly responsive manner necessary in these disputes, with causes of action such as breach of contract, interference with prospective economic advantage, fraud, false advertising, intellectual property infringement and misappropriation, antitrust, and discrimination claims.

Representative Matters

Royalty Dispute

A developer of wireless technologies retained Hemming Morse to test royalties owed by a computer manufacturer, for an arbitrated dispute. Hemming Morse examined the process in which royalties were calculated and tested amounts paid under the license agreement, including consideration of alternative interpretations of the contract, as regards what was royalty bearing. Hemming Morse issued written reports outlining royalty amounts due to the claimant and provided testimony at an arbitration.

Breach of Contract/Employment Dispute

Counsel for the president of a division of a large title insurance company retained Hemming Morse in connection with his suit against the company for breach of contract, alleging that the company had breached his employment contracts by not providing him the stock grants and stock option awards to which he was entitled. The Hemming Morse team developed numerous financial models quantifying damages to the plaintiff, including quantifying the value of the stock grants and stock option awards, and the Hemming Morse expert provided testimony at trial.

False Advertising

In a consumer class action, the plaintiffs claimed that the packaging on a popular beverage used a slogan that the indicated that the product came from Brazil, when in fact it was manufactured in other countries, which the plaintiffs asserted caused them to buy the beverage in question or pay inflated prices. The Hemming Morse team developed a hedonic regression model to estimate the price premium impact, of the alleged false advertising, on the package, as distinguished from other product attributes, with the Hemming Morse expert providing expert testimony in the matter.

Copyright Dispute

A Hemming Morse expert was retained by counsel to a clothing and sportswear company to analyze economic, financial, and damages issues related to transactions between the company and a rock ‘n’ roll photographer. These transactions covered signed image prints of legendary rock performers that later became disputed by the heir to the rock ‘n’ roll photographer’s estate, after his unexpected death. The expert analyzed industry information and business records, including publicly available information about the price to purchase similar images, and quantified the value of the alleged wrongful use of the copyrights.

Antitrust Claims

Hemming Morse was retained by counsel on behalf of a semiconductor developer to assess damages caused by a competitor’s anticompetitive behavior. Hemming Morse assessed and calculated lost profits associated with the delay in the plaintiff’s development and sale of its products, as a result of the alleged wrongful behavior.