Economic damages are the financial compensation courts award to make an injured party whole. In commercial and civil litigation, proving the
amount of those damages with rigor, reliability, and admissible methodology is as important as proving liability itself. A single weak damages opinion can collapse an otherwise strong case at summary judgment or trial.
Joey Friedman, CPA, ABV, provides
economic damages expert witness services and
lost profits quantification to attorneys throughout Florida — combining forensic accounting precision with ABV-credentialed business valuation to deliver defensible damages analyses across the full spectrum of commercial and civil disputes. Our
forensic accounting and
business valuation capabilities integrate seamlessly into every damages engagement.
Common Case Types Requiring Economic Damages Analysis
Attorneys retain Joey Friedman as their economic damages expert across a broad range of dispute types:
- Business interruption & commercial disputes — Lost revenue analysis for businesses harmed by a breach, tortious interference, natural disaster, or government action. We calculate the revenue the business would have earned absent the interrupting event.
- Lost profits in contract breach — Quantifying the profits lost due to a counterparty’s failure to perform, including marginal cost deductions and mitigation analysis.
- Divorce income disputes — Identifying true economic capacity, normalizing owner compensation, and calculating lost earning capacity where one spouse controls the books. Coordinates with forensic accounting to uncover hidden income.
- Personal injury & wrongful death economic loss — Past and future lost earnings, fringe benefits, household services, and present-value discounting for personal injury, wrongful termination, and wrongful death matters.
- Intellectual property infringement — Lost profits, reasonable royalty, and disgorgement of infringer profits in patent, trademark, trade secret, and copyright disputes.
- Partnership & shareholder disputes — Diminution of value, lost distributions, and buyout pricing for minority oppression and dissolution cases. Integrates with our business valuation expert witness work.
- Insurance subrogation & coverage disputes — Independent economic loss calculations for insurers and insureds where liability is contested.
For a deeper treatment of calculation approaches, see our guide on
how lost profits are calculated in business interruption and contract disputes.
Lost Revenue Analysis Methods — Plain English
A credible lost profits or lost revenue analysis requires selecting the method that best fits the facts of the case and that the data supports. Courts scrutinize methodology. Here are the primary approaches used in Florida economic damages engagements:
- Before-and-After Method — Compares the business’s financial performance in the period before the harmful event to performance afterward. Suitable when the business has a meaningful pre-event operating history and the harm date is clearly defined.
- Yardstick (Benchmark) Method — Measures what the damaged business would have earned by comparing it to reasonably comparable businesses, industry data, or market benchmarks. Used when the business is new, lacks historical data, or the before-period is contaminated.
- Market Share Method — Estimates lost revenue by projecting what share of a defined market the plaintiff would have captured absent the defendant’s conduct. Common in IP infringement and unfair competition cases.
- Discounted Cash Flow (DCF) / But-For Projections — Builds a model of what the business’s future cash flows would have been (the “but-for” scenario) versus what they actually were, discounted to present value. Used in lost business value and long-horizon damages engagements. See our analysis of court-tested lost profits calculation methods.
- Incremental Revenue / Profit Margin Approach — Separates fixed from variable costs to isolate the marginal profit actually lost — not just lost gross revenue. Required to avoid over-stating damages.
- Disgorgement — In unjust enrichment and IP cases, measures the defendant’s profits attributable to the infringing or wrongful conduct, as an alternative to the plaintiff’s lost profits.
The right method depends on available data, the type of harm, and the legal standard. A well-designed model uses sensitivity analysis to test assumptions and bound the range of reasonable damages estimates. For guidance on choosing between lost profits and lost business value, see our post on
diminution in business value vs. lost profits.
What Attorneys Should Gather Before Retaining an Expert
Early document preservation strengthens the damages case. The following financial and operational records are typically essential for a lost profits or economic damages analysis:
- Three to five years of financial statements (income statement, balance sheet, cash flow)
- Federal and state business tax returns for the same period
- Monthly sales and revenue records, including invoices, contracts, and purchase orders
- Bank statements (business and, in some cases, personal)
- Payroll records and owner compensation documentation
- Accounts receivable and accounts payable aging schedules
- Business plans, projections, and budgets prepared before the harmful event
- Industry benchmark data and comparable company financials
- Contracts, license agreements, and insurance policies relevant to the claim
- Damages-related communications (emails, board minutes, reports to investors)
- Prior expert reports or damages analyses from opposing counsel
Gaps in records can be addressed through forensic reconstruction techniques. See our overview of
expert witness and litigation support services for how we handle incomplete documentation.
Expert Witness Testimony & Rebuttal — Daubert-Ready Opinions
Every economic damages engagement at Joey Friedman CPA PA is built from the ground up to withstand Daubert gatekeeping and vigorous cross-examination. Our testimony framework includes:
- Methodology grounded in AICPA and NACVA standards — All approaches are consistent with generally accepted forensic accounting and business valuation practice, not invented for litigation.
- Testable and peer-reviewed foundation — Each method employed has been accepted in the forensic and economic literature and by Florida and federal courts in comparable matters.
- Disclosed assumptions and sensitivity analysis — We state every assumption explicitly and test the damages range under alternative assumptions so the trier of fact understands the boundaries of the opinion.
- Conservative, data-anchored opinions — Opinions are supported by documentary evidence and stated to a reasonable degree of professional certainty — not speculation.
- Rebuttal capability — We critically review opposing experts’ reports for methodological flaws, cherry-picked comparables, unsupported growth assumptions, improper cost treatment, and calculation errors. Written rebuttal reports are available for use at deposition, in Daubert motions, or at trial.
- Full work product retention — Complete files are retained and available for opposing counsel review consistent with applicable expert disclosure rules.
Joey Friedman has provided deposition and trial testimony in commercial, family law, and civil litigation matters throughout Florida. His ABV credential from the AICPA reflects advanced competency in business valuation as applied to damages quantification.
Engagement Process
- Free Initial Consultation — Discuss the case facts, confirm no conflicts of interest, and outline the scope and timeline of work needed.
- Engagement Letter & Retainer — A clear, written agreement defines deliverables, timeline, and fee structure. Fees are time-based, never contingent.
- Document Review & Analysis — We review all financial records, depositions, and industry data. We identify gaps and request supplemental materials as needed.
- Report Delivery — A written expert report documenting methodology, assumptions, and conclusions is delivered on your schedule, meeting all applicable expert disclosure requirements.
- Deposition & Trial Support — Mr. Friedman is available for deposition preparation, deposition testimony, arbitration, and trial testimony throughout Florida.
Ready to discuss your case? Call
954-282-9615 or
contact us online for a free initial consultation.
Frequently Asked Questions
What is the difference between economic damages and non-economic damages?
Economic damages are objectively measurable financial losses — lost profits, lost wages, medical expenses, and repair costs. Non-economic damages compensate for subjective harm such as pain, suffering, and loss of consortium. A CPA expert witness quantifies economic damages; non-economic damages are typically argued by counsel without expert financial testimony.
How are lost profits calculated in a business interruption claim?
The most common approach is the before-and-after method: comparing the business’s pre-event revenue trend to its post-event actual performance, with adjustments for variable costs avoided, mitigation, and intervening causes. The yardstick method may supplement or replace this when comparable industry data is more reliable than internal history.
What financial records are needed for a lost profits analysis?
Typically three to five years of financial statements, tax returns, monthly revenue records, bank statements, payroll records, and any projections or budgets prepared before the harmful event. The more complete the records, the stronger the damages model. We can work with incomplete records using forensic reconstruction techniques.
Can Joey Friedman serve as a rebuttal expert against an opposing damages expert?
Yes. Rebuttal engagements are a standard part of the practice. We review the opposing expert’s report, identify methodological weaknesses, unsupported assumptions, or calculation errors, and prepare a written rebuttal opinion for use at deposition, in Daubert motions, or at trial.
What does “Daubert-ready” mean for an economic damages report?
A Daubert-ready report is one that satisfies the four-part admissibility test under Daubert v. Merrell Dow: the methodology is testable, has been subjected to peer review, has known error rates, and is generally accepted in the relevant professional community. All reports prepared by this firm meet that standard and are designed to survive Daubert challenges.
What is the difference between lost profits and lost business value?
Lost profits measures the recurring income stream the business would have earned for a defined period. Lost business value (diminution in value) measures the permanent reduction in the going-concern worth of the enterprise attributable to the defendant’s conduct. The applicable measure depends on whether the harm was temporary or permanent and on the controlling legal standard. We analyze which model fits the facts at the outset of engagement.
How long does an economic damages engagement take?
Simple wage-loss or single-year lost profits analyses can often be completed in two to three weeks. Multi-year business interruption or lost business value engagements typically require six to ten weeks, depending on document availability and case complexity. We work within court-ordered expert disclosure deadlines.
What industries do you handle?
The firm has analyzed economic damages across professional services, healthcare, construction, real estate, retail, technology, financial services, and food & beverage. Case types include commercial litigation, business interruption, intellectual property infringement, employment disputes, partnership dissolution, personal injury, and insurance subrogation matters throughout Florida.
Are your fees contingent on the outcome of the case?
No. Expert witness fees are strictly time-based, never contingent on case outcome. Contingency-fee arrangements for expert witnesses are prohibited by professional standards and would impair the independence of the opinion. A retainer is collected at engagement; billing continues on a time-and-materials basis as work progresses.
How do I retain Joey Friedman as an economic damages expert witness?
Call
954-282-9615 or use our
online contact form. Initial consultations are free. We complete a brief conflict check, then issue a formal engagement letter and retainer to get started.
