The use of forensic accountants to quantify damages arising in commercial disputes is now commonplace. Quantification of damages is a commodity service. Damages calculation is best performed by forensic accountants who perform more than mere arithmetic, bringing to bear a full spectrum of financial, business and accounting skills to derive a soundly-based damages estimate.
Early, reliable assessment of the potential damages sum can be helpful for both plaintiffs and defendants in making decisions about whether to commence or to maintain litigation, and in considering settlement offers. Once the matter proceeds to court, the emphasis usually shifts to rigorous analysis and calculation, and presentation of a defensible position.
Quantifying loss that has been suffered can be a complex and challenging exercise.
How PwC can help you
We assist litigants and lawyers by:
- Identifying the appropriate calculation methodology and using this to prepare a damages calculation, taking into account the relevant law of damages and the circumstances of the case
- Identifying key assumptions in the calculations and providing advice as to how those assumptions might be proven
- Preparing a report, setting out the relevant issues and presenting and explaining in simple terms the complex valuation and accounting concepts in the context of the dispute
- Providing an informal report for use in mediation/settlement negotiations, including guidance on key issues. (Such a report will usually contain similar information to a formal expert’s report, but without being prepared to court presentation standard)
- Providing briefing papers that can be used by lawyers or counsel for advice on specific issues or in the cross-examination of witnesses (including expert witnesses)
- Reviewing opposing expert reports
