LOP-06
Litigation Support & Advisory for Loss of Profits
Advisory support throughout commercial litigation — reviewing the opposing party's loss of profits analysis, identifying methodological flaws, advising on financial strategy, preparing counsel for cross-examination of financial experts, and Part 36 offer quantum strategy.
What This Covers
Scope of Analysis
- Review of opposing expert loss of profits reports
- Methodological critique and rebuttal support
- Counsel preparation for financial cross-examination
- Part 36 / settlement offer quantum strategy
- Shadow expert and advisory-only engagements
When You Need This
Typical Instructions
- Opposing expert report requires independent critique
- Counsel needs financial strategy advisory support
- Settlement quantum assessment before formal instruction
- Cross-examination preparation of financial experts
Our ApproachReport Standards CPR Part 35 · FRE Rule 702 / Daubert · IBA Rules Engagement Type Single party · SJE · Tribunal-appointed · Advisory Forums High Court · Commercial Court · ICC · LCIA · SIAC · ICSID · US Federal
Methodology & Delivery
“We bring the same methodological rigour to advisory work as to formal expert reports — identifying assumptions, testing sensitivity, and equipping counsel with precise financial questions.”
Related Services
Common Questions
- What is the before and after method for loss of profits?
- The before and after method (also called the before and after approach) is a loss of profits quantification methodology that compares the financial performance of a business before the event that caused the loss with its performance after the event. The difference in revenue or profit — adjusted for non-event factors — represents the loss. It is most commonly used where the claimant has a reliable pre-event trading history.
- What is the yardstick method for loss of profits?
- The yardstick method (also called the comparable business method) quantifies loss of profits by reference to the financial performance of a comparable business — one that was not affected by the event that caused the claimant's loss. It is particularly useful where the claimant is a new business without an established trading history, or where pre-event records are unavailable or unreliable.
- How is business interruption loss of gross profit calculated?
- Business interruption loss of gross profit is calculated using the gross profit rate — the ratio of gross profit to turnover in the period before the interruption — applied to the shortfall in turnover during the period of indemnity. The gross profit rate is derived from the business's historical financial statements. Increased costs of working incurred to mitigate the loss are added, subject to the policy's provisions.
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