Economic Damages Analysis for Defensible Results
When a dispute hits, people argue about what happened. Courts also need a clear answer to a harder question: what did it cost. Economic damages analysis puts a dollar figure on financial harm tied to a specific event, such as a contract breach, intellectual property theft, fraud, or a serious injury.
Attorneys need numbers that hold up under cross-examination. Business owners need a clear view of exposure. Insurers need analysis they can audit. Turning Numbers focuses on speed, clarity, and defensible methods so damages do not sound like a guess or a negotiation tactic.
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What Economic Damages Analysis Is and When You Need It
Economic damages analysis measures financial loss and connects it directly to alleged conduct within a defined damage period. It answers a “but-for” question: what would have happened if the event never occurred, compared to what actually happened.
This analysis is typically required when money is the core dispute and the opposing side will challenge causation, timing, or assumptions. Strong work product is easy to follow, supported by records, and built on logic that matches the facts of the case.
Common Claims That Require an Economic Damages Analysis Expert
Economic damages analysis experts are often retained for matters involving:
- Breach of contract or termination, measured as lost profits or lost business value
- Business interruption, measured as lost sales and incremental costs
- Intellectual property theft or unfair competition, measured as lost profits or reasonable royalty-style losses
- Fraud or misstatement, measured as out-of-pocket loss or benefit-of-the-bargain impacts
- Personal injury or death, measured as lost earnings and benefits
Each claim type requires a tailored approach grounded in the governing facts and legal theory.
Accounting Losses and Legal Economic Damages Explained
Financial statements describe performance, but they do not determine legal damages. Economic damages require proof of causation, a defined damage period, and consideration of mitigation, including what losses could have been reduced.
They also depend on what is legally recoverable under the claim and jurisdiction. Conclusions must tie back to source records, not management summaries alone, and assumptions must be supported and documented.
How Economic Damage Analysis Is Built
A defensible economic damages analysis begins with the theory of the case and ends with a model that can be explained in plain language.
The process typically includes:
- Defining the loss question with counsel or the claims team
- Collecting and normalizing relevant financial and operational data
- Establishing the appropriate damage period
- Building a but-for model that isolates the event from unrelated factors
- Testing assumptions against records, operations, and industry data
- Documenting each step so conclusions are easy to trace
Typical deliverables include lost profits calculations, economic damage models, and supporting schedules suitable for mediation, deposition, or trial.
Why Turning Numbers Is a Trusted Economic Damages Analysis Expert
Turning Numbers supports attorneys and insurers with economic damages analysis that is:
- Evidence-first, with clean, well-documented workpapers
- Built on models that reconcile to books and underlying records
- Reviewed early to identify and flag weak inputs or unsupported assumptions
- Written clearly so non-accountants can understand the results
When the facts require it, the team can also identify fraud indicators, trace funds, and recommend control improvements to reduce repeat losses. Clients benefit from faster clarity, fewer disputes over assumptions, and a damages figure they can stand behind.
Get Court-Ready Economic Damages You Can Rely On
A strong economic damages analysis brings clarity when stakes are high. It strengthens settlement discussions, improves claim handling, and builds confidence if the matter proceeds to trial.
If you need an economic damages analysis expert who delivers court-ready results grounded in evidence, contact Turning Numbers for a confidential forensic consultation.
