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Damage Analysis Articles

Lack Of Expert Results In Zero Damages, Despite A Liability Win

May 15th, 2013

May 2013 A recent ruling in a New Jersey federal court will no doubt serve as a warning for litigants who decline to employ the [...]

Can Time Series Decomposition Allow Us To Settle The Score On Which Sport Is Best?

April 16th, 2013

April 2013 Every fan loves his sport.  There is much debate over which sports are growing in popularity and which are on the decline.  Although [...]

Seventh Circuit Bars Class Certification Because Of Damages

March 18th, 2013

March 2013 The Seventh Circuit decided Espenscheid vs. DirectSat, Inc., (No. 12-1943, February 4, 2013), upholding the district court’s decision to not certify a class [...]

Patent Infringement Damages Under Fire

March 4th, 2013

March 2013 Seventh Circuit Judge Richard Posner is one of the foremost legal scholars in the United States, particularly on economic matters. He has written [...]

Top Five Reasons That Chocolate Doesn’t Create More Nobel Laureates For Your Country

March 4th, 2013

March 2013 The article “Chocolate Consumption, Cognitive Function, and Nobel Laureates” recently published in the New England Journal of Medicine (NEJM) demonstrates that even published [...]

“Hollywood Accounting” Attack Upheld By The Ninth Circuit

December 10th, 2012

December 2012 “Who Wants to be a Millionaire” is an American game show that is based on the UK program of the same name.  When [...]

Supreme Court Brings California Closer To The Federal Expert Witness Admissibility Standard

December 10th, 2012

December 2012 In a unanimous opinion, the California Supreme Court clarified that trial courts may use either California Evidence Code Sections 801(b) or 802 to [...]

Rules Of Thumb And Other Short-Cuts Are Dangerous For Damage Calculations

November 26th, 2012

November 2012 Plaintiffs often desire short cuts to damage measurements.  Given the cost of using experts employing proper methods and data, the temptation is obvious.  [...]

Posner Opinion Provides Worthwhile Damage Guidance

October 1st, 2012

October 2012 In re: Apple vs. Motorola, the parties sued each other for patent infringement involving smartphones.   Seventh Circuit Judge Richard Posner, sitting by designation, [...]

Federal Circuit Corrects Recurring Errors With The Entire Market Value Rule

September 18th, 2012

September 2012 In LaserDynamics v. Quanta Computer, Case No. 11-1440 (Aug. 30, 2012) the U.S. Court of Appeals for the Federal Circuit overturned an $8.5 [...]

SEC Report Is Relevant To Litigators Presenting Financial Information

September 5th, 2012

September 2012 This week, the Securities and Exchange Commission (SEC) released a report required by Section 917 of the Dodd-Frank Wall Street Reform and Consumer [...]

Federal Circuit Approves Evidence Of Both Settlements And Related Negotiations In Reasonable Royalty Damages

June 27th, 2012

June 2012 Patent law (35 U.S.C. § 284) allows for lost profits in patent infringement cases, but requires damages of at least a reasonable royalty [...]

Sixth Circuit Provides Practical Guidance Regarding Expert Testimony Admissibility

June 6th, 2012

May 2012 In Newell Rubbermaid, Inc. vs. The Raymond Corporation (No. 10-3912, April 3, 2012), the Sixth Circuit evaluated the trial court’s exclusion of Plaintiff’s [...]

Second Excess Fee And Revenue Sharing 401(k) Trial Again Results In A Big Plaintiff Victory

June 6th, 2012

April 2012 In Tussey vs. ABB. Inc. (Case No. 2:06-CV-04305-NKL, March 31, 2012),  a United States District Court for the District of Western Missouri decided [...]

Seventh Circuit Provides Primer On Regression Analysis And What Can Go Wrong

June 6th, 2012

March 2012 After a jury trial, ATA Airlines (ATA) won a nearly $66 million verdict against Federal Express Corporation (FedEx). FedEx appealed that ruling.  In [...]

Solving Everyday Puzzles Using Regression Analysis

June 6th, 2012

February 2012 Regression analyses are commonly used in litigation because of their ability to ascertain both liability and damages.  However, the ability to communicate this [...]

Statistics Remains A Viable Means Of Gathering A Wide Range Of Factual Evidence

June 6th, 2012

February 2012 “If you’re going to play the game, boy, ya gotta learn to play it right” From “The Gambler”, famously recorded by Kenny Rogers [...]

A Primer On Regression Analysis

June 6th, 2012

February 2012 Regression analysis is a statistical technique that is commonly used in litigation because of its unique ability to ascertain both liability and damages.  [...]

Federal Circuit Again Redefines A Reasonable Royalty

December 1st, 2011

November 2011 Lost profits are typically understood to yield higher damages than reasonably royalties, but this is not always the case. Higher reasonable royalty damages [...]

Court-Appointed Expert Will Likely Have The Final Word On Damages In Oracle vs. Google

December 1st, 2011

November 2011 The District Court appointed an independent expert on the issue of damages pursuant to Rule 706 of the Federal Rules of Evidence. The [...]

Practical Observations From The Oracle vs. SAP Damages Reversal

October 28th, 2011

October 2011 In early September 2011, a trial court ordered a new trial involving a jury verdict in which Oracle obtained a $1.3 billion verdict [...]

Helping Your Expert Witness Succeed

August 1st, 2011

Published in Los Angeles Lawyer, April 2003   Expert witnesses are more important than ever. Most complicated cases do not settle until after the experts [...]

Improving Cross-Examination Of Expert Witnesses

August 1st, 2011

Published in Los Angeles Lawyer, April 2005   In many respects, the cross-examination of an expert witness is the same as for other witnesses. Some [...]

Improving Your Expert Deposition Results Is Easy

August 1st, 2011

Published in Los Angeles Lawyer, November 2004   In the vast majority of circumstances, your deposition results can be improved by adding a few questions [...]

The Ten Commandments Of Demonstrative Evidence In Litigation

August 1st, 2011

Published in Los Angeles Lawyer, April 2004   If you want to improve your chances of success, commit these ideas to stone. Then follow them [...]

Avoiding Common Mistakes When Selecting An Expert Witness

August 1st, 2011

Published in Los Angeles Lawyer, November 2002   The following suggestions result from my experience serving as a witness, watching hundreds of other expert witnesses, [...]

IRS Toughens Position On Deductibility Of Government Settlements

November 17th, 2010

 In September and October 2008, the IRS issued two pronouncements that address when litigation settlement payments with governments are deductible. These settlements could occur under [...]

Patent Damage Changes Are Coming

October 18th, 2010

October 2007 In September, the House of Representatives approved the most sweeping changes to the United States patent law in over 50 years. If ultimately [...]

Punitive Damages Now More Difficult In Patent Cases

September 18th, 2010

September 2007 In a landmark decision that overturns long-standing precedent, the Court of Appeals for the Federal Circuit (CAFC) unanimously heightened the test to determine [...]

Federal Circuit Criticizes Ninth Circuit Damages Ruling. Double Recovery Must Be Avoided

August 12th, 2010

November 2006 In Aero Products vs. Intex Recreation (no. 05-1283, Fed Cir. October 2, 2006), the Court held that damages arising from the same sales [...]

Largest Patent Infringement Damage Award Ever

July 18th, 2010

July 2009 A jury in the Eastern District of Texas found that Abbott Laboratory’s best-selling drug, Humira, violated a patent on Johnson & Johnson’s Remicade. [...]

Patent Damages Case Redefines A “Reasonable Royalty”

July 18th, 2010

July 2007 Calculating patent infringement damages just got harder, and the allowable damages a lot larger. The Court of Appeals for the Federal Circuit (CAFC) [...]

Post-Judgment Reasonable Royalty Rates Get Important Additional Guidance

May 18th, 2010

May 2009 The Supreme Court in eBay v. MercExchange, 547 U.S. 388 (2006) overturned the Federal Circuit’s “general rule” of automatically issuing a permanent injunction [...]

Perhaps $2 Billion Owed Under Music Contracts

April 18th, 2010

April 2011 In monetary terms, the biggest decision made by the Supreme Court in the current session is a case that they decided NOT to [...]

Federal Circuit Reverses Damage Verdict Not Supported By Proper Expert Testimony

April 18th, 2010

September 2009   Many lawyers admit that they are not “a numbers person”. If you are one of these folks, you need to hire an [...]

Federal Circuit Court Of Appeals Provides Guidance On Reasonable Royalty Damage Calculations

April 18th, 2010

April 2010 In ResQNet.com, Inc. v. Lansa, Inc., Nos. 08-1365, -1366, 09-1030 (Fed. Cir. Feb. 5, 2010), the United States Court of Appeals for the [...]

Examiner Fingers Lehman’s Management And Outside Auditor For Serious Accounting Misreporting

March 16th, 2010

March 2010  Lehman Brothers is the largest bankruptcy in U.S. history. A report by a U.S. bankruptcy examiner investigating the collapse of Lehman Brothers blames [...]

Expert Witness Federal Rule Changes Will Take Effect December 2010

February 17th, 2010

February 2010 On September 15, 2009, the Judicial Conference approved rule changes under federal Rule 26 regarding expert reports and the discoverability of communications with [...]

Reasonable Royalty 25% Rule Is Dead

January 18th, 2010

January 2011 The Federal Circuit ruled in Uniloc USA, Inc. v. Microsoft Corp. (January 4, 2011) that the widely used but fatally flawed 25 percent [...]

Avoiding A Contingency Fee Tax Trap

January 17th, 2010

In re: Commissioner vs. Banks and Commissioner vs. Banaitis, the Supreme Court ruled (8-0) that contingency attorney fees paid by an individual must be included [...]

401(k) Fee And Disclosure Litigation Gets A Boost

November 18th, 2009

November 2009 Since late 2006, over two dozen federal lawsuits have been filed against some of the country’s largest employers. Many of these cases were [...]

Daubert & Kumho Expert Challenges Increase, Moving Away From Their Original Purposes

August 1st, 2009

June 2011 PricewaterhouseCoopers (PwC) recently issued a study of what has occurred with financial (usually damages) experts since the 1999 Supreme Court decision in Kumho [...]

Disgorgement Returned As A Monetary Remedy In Delaware Cases

August 1st, 2009

June 2011 Although the case at issue involves insider trading, the limitations involving disgorgement as a monetary remedy could be applied to many other circumstances. [...]

Indian Tribes Win Big In California Lawsuit

June 18th, 2009

June 2010 In an April 20, 2010 ruling that has not received the press attention that it deserves, the Ninth Circuit upheld a trial court [...]

Toxic Drywall Claims Could Be Next Large Wave Of Construction Litigation

May 18th, 2009

May 2009 The newest phase of “sick house” litigation appears to be here. Drywall imported from China is releasing sulfur compounds that provide a rotten [...]

Expert Fees Recoverable In Trade Secret Disputes

April 18th, 2009

December 2006   In the legislative session that just ended, Civil Code 3426.4 was amended to permit recovery of costs by a prevailing party in [...]

Central District of California Case Poses New Requirements For Internal Investigations

April 17th, 2009

April 2009 In an April 2009 written Order following a three-day hearing, federal judge Cormac Carney criticized Irell & Manella for “ethical failures” arising from [...]

Ninth Circuit Provides New Cost-Based Rule For Antitrust Cases

April 14th, 2009

September 2007   In McKenzie-Willamette Hospital vs. PeaceHealth (no. 05-35627, September 4, 2007), the Ninth Circuit established a new test regarding whether bundled transactions were [...]

Energy Capital Corp. Case Provides Important Guidance On Commercial Damages

April 14th, 2009

October 2003   A 2002 case, Energy Capital Corp. v. United States (302 F.3d 1314; 2002 U.S. App. LEXIS 16447), provides guidance on three issues [...]

Checklist for Damages Expert Witness Selection

April 14th, 2009

Here are items you need to determine when selecting a financial expert to address your damages calculation:

Another Example Of False Economy When Presenting Damages

April 14th, 2009

September 2010   A plaintiff with a large verdict against accounting giant KPMG lost its award because the appellate court could not find evidence that [...]

Ninth Circuit Supports Lone Pine Orders Without Restrictions

March 18th, 2009

March 2011 A Lone Pine order is a case management device in which the judge requires the plaintiff to make a prima facie showing of [...]

Huge Fraud In Chinese Stocks

August 1st, 2008

June 2011 Investors in Chinese companies have depended upon outside auditors, institutional investors, and global investment banks as substantiation for the notion that their financial [...]

California Supreme Court Clarifies Permissible Punitive Damages

July 18th, 2008

July 2005 In two rulings issued in June 2005, the California Supreme Court interpreted the U.S. Supreme Court guidance on punitive damages.  It was the [...]

USPTO Is Getting It Wrong On Tax Strategy Patents

July 17th, 2008

July 2006 The U.S. Patent and Trademark Office (PTO) has been allowing patents on tax strategies.  So far, the PTO lists 43 issued patents, and [...]

California Appellate Court Limits Punitive Damages in a Commercial Setting to a 1:1 Ratio

May 18th, 2008

May 2007 California’s Fourth Appellate District certified for publication a significant decision addressing the constitutionality of punitive damages awards. In a decision that will apply [...]

California’s New Punitive Damage Tax Creates Attorney Conflicts-Of-Interest, And Tax Problems For Successful Plaintiffs

April 18th, 2008

April 2005   In enacting its new punitive damages tax, California failed to consider the plaintiff’s likely federal income tax impact. As a result, plaintiffs [...]

U.S. Supreme Court Addresses Punitive Damage Limitations

March 18th, 2008

March 2007 On February 20, 2007, Philip Morris won a (perhaps temporary) victory when the U.S. Supreme Court reversed a $79.5 million punitive damage verdict [...]

Beware Of Poll Results

August 2nd, 2007

June 2011   Based on results of its May 2011 survey, the Associated Press (AP) reported that President Obama hit his highest approval rating in [...]

Court Rules Retention Of Draft Expert Reports Is Not Necessary

May 17th, 2007

May 2007 The obligation to retain and produce drafts of expert reports in discovery is becoming a common dispute area. Using current word processing technology, [...]

Interactive Chi-Square Calculator Illustrates Independence Testing

April 19th, 2007

June 2010   Statisticians describe independence as whether the occurrence of one event or characteristic makes it neither more nor less probable that other event(s) [...]

First Law Signed By Obama Will Increase Employment Discrimination Litigation

April 18th, 2007

February 2009   The first piece of legislation signed by President Obama is the Lilly Ledbetter Fair Pay Act of 2009 (“FPA”). This anti-discrimination law [...]

Using Statistics To Establish (Or Disprove) Relationships

April 15th, 2007

February 2011   Statisticians describe independence as whether the occurrence of one event or characteristic makes it neither more nor less probable that other event(s) [...]

Is There Really A Relationship Between Public Union Contracts And States’ Fiscal Messes?

March 18th, 2007

March 2011 The recent political standoff in Wisconsin over the collective bargaining rights and benefits of public union employees received significant national attention and will [...]

RIF Statistical Audits Reduce Discrimination Risks

March 18th, 2007

March 2009   Unfortunately, current difficult economic times are forcing many employers to lay off employees. Employers considering a reduction in force (RIF) can reduce [...]

Poor Surveys Get Opposite Poll Results

March 18th, 2007

March 2011  Most national polling organizations are independent and do not have an agenda they want to advance. Independent and accurate polling is the basic [...]

Federal Health Care Fraud Enforcement Efforts Recover Record Amounts

February 18th, 2007

February 2011   U.S. Department of Health and Human Services (HHS) released its required annual Health Care Fraud and Abuse Control Program report. The report [...]

A Primer On Creating & Using Surveys

February 18th, 2007

February 2011   Opinion polls (surveys) are used extensively to understand almost everything that cannot be looked up as a scientific fact. Polls are reported [...]

Calculating Sample Size

January 18th, 2007

Sampling is an accepted way of making estimates at a much lower cost and when done properly, statistics can provide useful information regarding the likelihood [...]

New Accountant Ethic Proposals Affect Use Of Your Client’s Outside Accountant, And Their Liability Under Malpractice Claims

September 17th, 2006

September 2006 In September 2006, the American Institute of Certified Public Accountants (AICPA) issued proposed new ethics rulings.  Because these are reissued proposals that incorporate [...]

Exxon Punitive Damages Case Has Broader Implications

May 22nd, 2013

July 2008 Initial commentators of the U.S. Supreme Court’s ruling on punitive damages involving the Exxon Valdez oil spill (Exxon Shipping v. Baker, No. 07-219) [...]