Due to Expert’s Use of Insufficient Facts or Data, Fifth Circuit Precludes Expert’s Opinion on Lost Profit Damages

Dugan Russell v. Allianz Life Insurance Company of North America, et al., No. 3:13-cv-00030
United States District Court, N.D. Mississippi, Oxford Division: Decided January 8, 2015
Dugan Russell (“Russell”) sought to rely on expert testimony to provide a calculation of profits he allegedly lost caused by the termination of his Agent Agreement with Allianz Life Insurance Company of North America (“Allianz”).

Court Clarifies Panduit Test’s Role in Daubert Challenge of Lost Profits Calculation

Roll-Rite, LLC v. Shur-Co, LLC, 2014 U.S. Dist. LEXIS 73026 (May 29, 2014)
What’s the interplay between “but for” causation, the Panduit test, and the concept of reconstructing the market? In a recent patent case, a court sorted out this issue when it reviewed an expert’s lost profits calculation.
The plaintiff owned a patent for a motor used in its “Series 3500” electric tarp system.

The SEC Awards More Than $14 Million to Whistleblower

The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) was established in the wake of the financial crisis in July 2010. The Act overhauled financial regulations and introduced additional consumer protections. The Security Exchange Commission’s Office of the Whistleblower (the “Office of the Whistleblower”) was established in 2011 as authorized under the Act.

Jury Awards More Than Plaintiff’s Expert

Alaska Rent-a-Car, Inc. v. Avis Budget Group, Inc., 2013 U.S. App. LEXIS 12709 (June 19, 2013)
In appealing a $16 million jury award to Alaska Rent-A-Car for the breach of a settlement agreement, Avis claimed the plaintiff’s expert made unsupportable assumptions and comparisons regarding the market and other car rental companies that compromised his calculations.

Lost Profits May Constitute General Rather than Consequential Damages in New York Agreement Breach Claims

Biotronik A.G. v. Conor Medsystems Ireland, Ltd., et al., 2014 NY Slip Op 02101
Court of Appeals of New York: Decided March 27, 2014
In May 2004, plaintiff Biotronik, A.G. (“Biotronik”), a manufacturer and distributor of medical devices, and defendant Conor Medsystems Ireland, Ltd. (“Conor”), the developer and manufacturer of CoStar,

Are You Making Full Use of Your Expert Witness’s Expertise?

In a litigation, at some point, the rules require that each side notify the other of all the witnesses that they intend to call at trial, including experts. Until that point, litigators generally don’t retain experts, thinking it saves them money. In reality, it is in the client’s best interest to actually retain an expert early because they can help with other aspects of the trial in addition to their expert testimony.

Lost Profit Calculations Must be based on Objective Facts, Figures, or Data From Which the Amount of Lost Profits Can be Ascertained

Nationwide Recovery Systems, Ltd. v. HHT Limited Company and Michael Malone, Jr., No. 05-11-1058-cv, Court of Appeals of Texas, Fifth District: Opinion Delivered May 31, 2013
A jury awarded damages for lost profits to Nationwide Recovery Systems, Ltd. (“Nationwide”), a commercial debt collector, resulting from a former Nationwide employee’s breach of a non-solicitation clause.