LOP-05
Professional Negligence Lost Profits Expert Witness
Expert quantification of lost profits arising from professional negligence — lost business opportunities caused by negligent legal advice, lost profits from negligent financial advice, and commercial loss caused by negligent surveyor, architect, or other professional.
What This Covers
Scope of Analysis
- Lost business opportunity from negligent advice
- Lost contract value attribution analysis
- Counterfactual 'but for' scenario modelling
- Causation and remoteness of financial loss
- Professional indemnity claim quantum support
When You Need This
Typical Instructions
- Negligent legal advice causing commercial loss
- Negligent financial or investment advice
- Surveyor, architect, or valuer negligence
- Professional indemnity insurance quantum disputes
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 reconstruct the commercial position the claimant would have occupied but for the negligent advice, isolating the profit differential attributable to the negligence from other market factors.”
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.
Q.01
Q.02
Q.03