Economic Damages Expert Witness

When people suffer injuries or any pecuniary loss resulting from harm, they might receive financial awards known as damages. Economic damages refer to concrete losses someone has or will suffer as a result of the incident. The financial compensation can cover things like medical costs, lost income, and property damage.

Other forms of damages the law provides for, if allowed to compensate, include non-economic and punitive damages. Non-economic damages are losses that may have caused one pain and suffering or emotional distress that is more abstract. Punitive damages punish a defendant by serving as an example to others to prevent a repeat of similar acts.

Calculating economic damages can be a complex task. Consequently, an economic damages expert witness plays an important role during a trial. These professionals have expertise in assessing and quantifying losses in legal cases. They conduct economic analysis, calculate damages, provide opinions, draft expert witness reports, and testify in legal trials. Their testimony helps reduce uncertainty and makes it easier for courts to understand the economic impact of an incident.

These experts have the authority to quantify losses clearly. How that expert witness communicates determines the success or failure of a case. They should do it clearly and explain complex theories in a way that an average person can understand. In cases where economic damages need to be demonstrated and explained, hiring an experienced and qualified expert is crucial.

Economic damages expert witnesses can help both parties—plaintiffs and defendants—during legal proceedings. Their work to help their clients’ legal strategy include:

• Calculating economic losses, such as wages, profits, and medical costs, monetarily adjusted;
• Estimating future damages;
• Reviewing and critiquing the methodologies and conclusions presented by the other party’s expert witness;
• Presenting the facts of the case understandably;
• Testifying in court.

They can be called upon in many legal matters, including personal injury, wrongful death, disputes between businesses, insurance issues, and workplace-related cases.

Personal Injury

In personal injury lawsuits, juries often comprehend that a plaintiff should be granted damages but may not know the amount. In this regard, experts support the court’s estimation of the amount of money the plaintiff lost due to personal injury.

Wrongful Death

Experts assess the economic losses suffered by the deceased’s dependents, such as loss of financial support.

Business Disputes

In business disputes, economic losses may arise from breaches of contract, and an expert can assess these losses.

Insurance Claims

Experts can evaluate economic damages that arise from insurance claims, such as property damage and loss of income.

Employment Litigation

In employment litigation, experts value damages arising from discrimination, wage disputes, wrongful termination, and workplace injury.

There are many areas in which an economic damages expert can give an opinion and testify, including:

• • Valuation: experts can assess the value of a business, asset, and intellectual property affected by damages;
  • Financial Analysis: these experts are familiar with financial analysis techniques used for the conclusion of the report to the court;
  • Statistical Analysis: they can use statistical methods to predict future economic damages;
  • Present Value Calculations: these experts can calculate future losses to their current value.

To calculate economic damages, the expert must understand how someone lived before the incident and how it might affect them. These experts have the expertise to give a precise view of the plaintiff’s financial state before and after the incident. This helps estimate past and future income to calculate economic damages. In some cases, the economic damage expert works with other experts, such as the economic expert, to better assess damages.

An economic damages expert begins by determining which factors to include in the calculation of economic damages analysis. For instance, in employment litigation, these factors include earnings history, loss of income, and projected earnings. Then, experts conduct a records review, applying objective data and economic formulas to calculate the damages. In business disputes, experts can assess how businesses performed until and after the incident. Based on this information, they can calculate economic damages and provide a present value in dollars for lost profits.