Cantitate/Preț
Produs

Measuring Business Interruption Losses and Other Commercial Damages

De (autor)
Notă GoodReads:
en Limba Engleză Carte Hardback – 18 Sep 2009
MEASURING BUSINESS INTERRUPTION LOSSES AND OTHER COMMERCIAL DAMAGES
SECOND EDITION
Computing damages in business interruption lawsuits requires a sound knowledge of fields such as litigation economics, forensic accounting, and law. Now, one comprehensive volume has been developed for practitioners in this field specifically for dealing with the diverse demands presented by commercial damages analysis.
The only book in this field to explain the complicated process of measuring business interruption damages whether caused by wrongful acts of defendants in lawsuits or natural disasters Measuring Business Interruption Losses and Other Commercial Damages, Second Edition provides a comprehensive framework for how such losses should be measured. The areas covered in this updated second edition include:
  • Recent developments in the courts on damages
  • Selecting a damages expert and challenging an opposing expert
  • Understanding the role of the economy in business interruptions
  • Doing an industry analysis to support or refute loss claims
  • Methods of projecting lost sales
  • Computing the costs of lost sales to arrive at lost profits
  • Discounting to present value and addressing risk
This book then goes on to show how damages are measured in important specialized areas such as:
  • Intellectual property litigation, including patent, copyright, and trademark cases
  • Securities litigation, including fraud on the market, mergers and acquisitions, and broker–related damages
  • Antitrust litigation, including how markets are defined and ways of measuring anti competitive behavior
  • Economics of punitive damages, with discussion on the various effects caused by imposing punitive damages on corporate defendants
Clearly written, this major contribution′s self–contained chapters are an invaluable resource for the various busy practitioners working in this area.
Citește tot Restrânge

Preț: 58068 lei

Preț vechi: 77424 lei
-25%

Puncte Express: 871

Preț estimativ în valută:
11899 13898$ 10583£

Carte disponibilă

Livrare economică 03-17 octombrie
Livrare express 28 septembrie-05 octombrie pentru 5508 lei

Preluare comenzi: 021 569.72.76

Specificații

ISBN-13: 9780470400142
ISBN-10: 0470400145
Pagini: 528
Dimensiuni: 163 x 234 x 41 mm
Greutate: 0.75 kg
Ediția: 2nd Edition
Editura: Wiley
Locul publicării: Hoboken, United States

Public țintă

Accountants, economists and attorneys

Textul de pe ultima copertă

MEASURING BUSINESS INTERRUPTION LOSSES AND OTHER COMMERCIAL DAMAGES
SECOND EDITION
Computing damages in business interruption lawsuits requires a sound knowledge of fields such as litigation economics, forensic accounting, and law. Now, one comprehensive volume has been developed for practitioners in this field specifically for dealing with the diverse demands presented by commercial damages analysis.
The only book in this field to explain the complicated process of measuring business interruption damages whether caused by wrongful acts of defendants in lawsuits or natural disasters Measuring Business Interruption Losses and Other Commercial Damages, Second Edition provides a comprehensive framework for how such losses should be measured. The areas covered in this updated second edition include:
  • Recent developments in the courts on damages
  • Selecting a damages expert and challenging an opposing expert
  • Understanding the role of the economy in business interruptions
  • Doing an industry analysis to support or refute loss claims
  • Methods of projecting lost sales
  • Computing the costs of lost sales to arrive at lost profits
  • Discounting to present value and addressing risk
This book then goes on to show how damages are measured in important specialized areas such as:
  • Intellectual property litigation, including patent, copyright, and trademark cases
  • Securities litigation, including fraud on the market, mergers and acquisitions, and broker–related damages
  • Antitrust litigation, including how markets are defined and ways of measuring anti competitive behavior
  • Economics of punitive damages, with discussion on the various effects caused by imposing punitive damages on corporate defendants
Clearly written, this major contribution′s self–contained chapters are an invaluable resource for the various busy practitioners working in this area.

Cuprins

Preface xv
CHAPTER 1 Introduction 1
Development of the Field of Litigation Economics 1
Development of the Field of Forensic Accounting 2
Qualifications of an Economic Expert 4
Qualifications of an Accounting Expert on Damages 7
Interdisciplinary Nature of Commercial
Damages Analysis 7
Difference between Disciplines of Economics and Finance 10
Finding a Damages Expert 10
Critically Reviewing a Potential Expert s Curriculum Vitae 12
Getting the Damages Expert on Board Early Enough 17
Courts Position on Experts on Economic Damages 18
Standards for Admissibility of Expert Testimony 21
Expert Reports 25
Defense Expert as a Testifying Expert, Not Just a Consultant 28
Quantitative Research Evidence on the Benefits of Calling a Defense Expert 30
Treatment of the Relevant Case Law 31
Legal Damage Principles 31
Other Types of Damages Cases 37
Summary 40
References 41
CHAPTER 2 Economic Framework for the Lost Profits Estimation Process 45
Foundation for Damages Testimony 45
Role of Assumptions in Damages Analysis 46
Hearsay 47
Approaches to Proving Damages 49
Causality and Damages 54
Using Demonstrative Evidence to Help the Client Understand Its Losses or Lack of Losses 61
Causality and Loss of Customers 62
Graphical Sales Analysis and Causality 63
Causality and the Special Case of Damages Resulting from Adverse Publicity 65
Length of Loss Period: Business Interruption Case 66
Length of Loss Period: Plaintiff Goes Out of Business 71
Length of Loss Period: Breach of Contract 72
Methodological Framework 73
Summary 75
References 77
CHAPTER 3 Economic Analysis in Business Interruption Loss Analysis 79
Economic Fluctuations and the Volume of Litigation 79
Macroeconomic Analysis 80
Definition of a Recession 80
Measuring Economic Growth and Performance 81
Business Cycles and Economic Damages 89
Using More Narrowly Defined Economic Aggregates 90
Overstatement of Inflation Statistics 98
Regional Economic Trends 100
International Economic Analysis 104
Macroeconomic and Regional Economic Analysis and the Before and After Method 106
Summary 107
References 108
P1: OTA/XYZ P2: ABC
CHAPTER 4 Industry Analysis 111
Sources of Industry Data 111
New North American Industry Classification System 118
Retaining an Industry Expert 125
Conducting an Industry Analysis 126
Relating Industry Growth to the Plaintiff s Growth 130
Other Industry Factors 131
Yardstick Approach and Industry Analysis 134
Summary 138
References 138
CHAPTER 5 Projecting Lost Revenues 141
Projections versus Forecasts: Economic versus Accounting Terminology 141
Using Graphical Analysis as an Aid in the Forecasting Process 142
Methods of Projecting Lost Revenues 147
Curve–Fitting Methods and Econometric Models 152
Understanding Regression Output and Diagnostics 155
Common Problems Affecting Regression Models 156
Confidence in Forecasted Values 164
Frequency of the Use of Econometric Techniques in Commercial Litigation 167
Seasonality and the Forecasting Process 175
Capacity Constraints and Forecasts 177
Sensibility Check for the Forecasted Values 178
Projecting Lost Sales for a New Business 179
Projecting Losses for an Unestablished Business 184
Summary 187
Appendix 188
References 196
CHAPTER 6 Cost Analysis and Profitability 199
Presentation of Costs on the Company s Financial Statements 199
Measures of Costs 201
Profit Margins and Profitability 201
Appropriate Measure of Profitability for a Lost Profits Analysis 201
Burden of Proof for Demonstrating Costs 207
Fixed versus Variable Costs 207
Using Regression Analysis to Estimate Costs as Opposed to More Basic Methods 210
Pitfalls of Using Regression Analysis to Measure Incremental Costs 211
Possible Nonlinear Nature of Total Costs 211
Limitations of Using Unadjusted Accounting Data for Measuring Incremental Costs 215
Treatment of Overhead Costs 218
Must a Plaintiff Be a Profitable Business to Recover Damages? 223
Mitigation of Damages 224
Cash Flows versus Net Income: Effects on the Discounting Process 230
Recasted Profits 231
Firm–Specific Financial Analysis 237
Cross–Sectional versus Time Series Analysis 239
Summary 239
References 240
CHAPTER 7 Time Value of Money Considerations 243
Determination of Interest Rates 244
Types of Interest Rates 244
Financial Markets: Money Market versus Capital Market 245
Money Market Securities and Interest Rates 245
Capital Market 247
Real versus Nominal Interest Rates 248
Determinants of Interest Rates 252
Prejudgment Losses 258
Components of the Cost of Capital 260
Discounting Projected Future Profits 267
Common Errors Made in Discounting by Damages Experts 273
Summary 279
References 280
CHAPTER 8 Business Valuations 285
Legal Standard for Business Valuations in Business Interruption and Business Failure Lawsuits 285
Lost Profits versus Lost Business Value 287
Business Valuation Framework 289
Theoretical Value of a Business 290
Public versus Private Companies 291
Business Valuation Parameters 292
Revenue Ruling 59–60 and Factors to Consider in Valuation 292
Valuation Concepts 295
Most Commonly Used Valuation Methods 298
Capitalization of Earnings 302
Comparable Multiples 303
Adjustments and Discounts 307
Summary 312
References 313
CHAPTER 9 Intellectual Property 315
Patents 315
Computation of Damages for Patent Infringement 318
Legal Requirements Necessary to Prove Lost Profits 318
Lost Profits Due to Price Erosion 322
Lost Profits Due to Changing Cost Conditions 325
Royalty Arrangements 326
Copyrights 333
Measurement of Damages for Copyright Infringement 336
Trademarks 339
Trade Secrets 345
Summary 347
References 349
CHAPTER 10 Securities–Related Damages 353
Key Securities Laws 353
Damages in Securities Litigation 358
Fraud–on–the–Market 359
Comparable Index Approach 364
Event Study Approach 367
Broker Raiding Cases 378
Merger–Related Damages 383
History of Mergers in the United States 384
Client–Broker Claims 388
Churning 390
Appendix 10A: Case Study: In Re Computer Associates International, Inc. 397
References 404
CHAPTER 11 Antitrust 407
Antitrust Laws 408
Antitrust Enforcement 411
Economics of Monopoly 411
Changing Pattern of Antitrust Enforcement 416
Antitrust and the New Economy 421
Monopolization and Attempts at Monopolization 421
Market Definition and Microeconomic Analysis 426
Market Power 426
Measures of Market Concentration 428
Common Types of Antitrust Cases 430
Summary 442
References 443
CHAPTER 12 Economics of Punitive Damages 447
Evolving Position of the U.S. Supreme Court on Punitive Damages 447
Frequency of Punitive Damages 450
Frequency of Punitive Damages and the Shadow Effect of Punitive Damages 451
Purposes of Punitive Damages 452
Punishment of Corporations and Corporate Governance 453
Spillover Effects and Punishment of Corporations 454
Deterrence Theory and the Changing Litigation Environment 465
Deterrence and Regulatory Processes 467
Typical Financial Measures Used in the Determination of Punitive Damages 470
Net Worth 472
Market Capitalization 474
Uncertain Litigation Environment 480
Summary 483
References 484
Index 489

Recenzii

"An updated explanation of the methodology for how lost profits should be measured. Now fully revised and updated, focused on commercial litigation and the many common types of cases, this is the only book in the field to explain the complicated process of measuring business interruption damages. The book features an easy to understand and apply, step–by–step process for how losses should be measured so as to be accurate and reliable and consistent with the relevant laws." (AccountingWEB.com, February 1, 2010)

Notă biografică

PATRICK A. GAUGHAN has published eight books, including the award–winning Mergers Acquisitions, and Corporate Restructurings, Fourth Edition, published by Wiley. He is President of Economatrix Research Associates, Inc., a firm that has conducted damages analysis for the past twenty years for corporate clients such as Airbus, GE, GM, Ford, Philip Morris, and Wyeth as well as insurance companies including Liberty Mutual, Zurich, State Farm, and many of the major law firms in the United States.