Examples of Our Work [Economic Loss]

Business Interrupted

Lost profit claims require a thorough, reasoned analysis to support them and, often, expert testimony in court.

Engagement
Gleason was hired by counsel for a manufacturing company that was claiming economic losses, including lost profits and expenses, resulting from the construction of an adjacent apartment complex. Runoff from the construction damaged the pond that served the manufacturer’s cooling and sprinkler system. To repair the damage, the company was forced to shut down during its busiest season.

Gleason’s Role
Substantiating the expenses to repair the water system was straightforward, but because the company had no documentation of lost sales, calculating the lost profits was complex. The company had historically operated at full capacity and maintained low levels of inventory consistent with its “just-in-time” manufacturing relationship with customers. Since the company’s products were sold and delivered as soon as they were manufactured, there was no inventory to sell during the shutdown. To establish lost sales, we documented the company’s plant capacity, inventory levels and planned sales. We also analyzed its historic sales figures, comparing them to historical production and sales projections to establish that the company’s projections were accurate estimates of actual sales. During trial, we provided expert testimony, detailing our analysis of the company’s damages.

Results
Based on the thoroughness of our lost profits analysis and calculation, counsel litigated a successful damage claim recovery for its client.