The Importance of a CPA as an Expert Witness in Economic Damages Cases

Economic damages refer to the monetary compensation sought by a party who has suffered a loss or injury due to another party’s actions or inactions. Assessing these damages can be complex and requires specialized knowledge and experience. Joey Friedman CPA PA, led by Joey Friedman, CPA, has extensive expertise in quantifying business and personal economic damages. We provide valuable assistance to clients in navigating through the various intricacies involved in reaching a supportable opinion on the economic damages suffered.

Here we will discuss the importance of a Certified Public Accountant (CPA) as an expert witness in economic damages cases and the different types of cases that may require their expertise.

The Role of a CPA as an Expert Witness​

A CPA as an expert witness can be engaged in a wide range of cases involving economic damages, including but not limited to:

  • Lost business value: This may involve cases where a party’s actions or inactions have led to a decrease in the value of a business. A CPA can evaluate the business’s financial records, perform valuations, and determine the loss in value attributable to the wrongful conduct.
  • Lost profits: In instances where a party’s actions have resulted in a loss of profits for another party, a CPA can analyze historical financial data and industry trends to estimate the amount of lost profits.
  • Breach of contract: When one party fails to fulfill their contractual obligations, a CPA can assess the financial consequences of the breach and quantify the damages suffered by the injured party.
  • Lender liability claims: In cases where a lender has acted negligently or in bad faith, resulting in financial harm to the borrower, a CPA can evaluate the financial impact of the lender’s actions and quantify the damages.
  • Tortious interference claims: When a third party interferes with a contractual relationship, causing economic harm, a CPA can determine the financial impact of the interference on the parties involved.
  • Theft of intellectual property claims: A CPA can quantify the economic damages resulting from the theft of trade secrets, copyrights, patents, or other forms of intellectual property.
  • Breach of covenants not to compete: When a party violates a non-compete agreement, a CPA can assess the financial consequences of the breach and calculate the damages suffered by the injured party.
  • Insurance claims: A CPA can assist in quantifying the economic damages related to insurance claims, such as business interruption claims or property damage. They can analyze the financial records and determine the extent of the loss suffered due to the insured event.
  • Patent infringements: In cases where a party has infringed upon another party’s patent, a CPA can estimate the financial losses resulting from the infringement, including lost profits, royalties, and any decrease in the value of the patented invention.
  • Trademark violations: When a party uses another party’s trademark without permission, a CPA can calculate the economic damages stemming from the unauthorized use, such as lost sales, lost licensing opportunities, and damage to the trademark’s reputation.
  • Fraudulent conveyances: In situations where a debtor has fraudulently transferred assets to avoid paying creditors, a CPA can trace the assets and determine the financial impact of the fraudulent conveyance on the creditors.
  • Lost wages: A CPA can assess the economic damages related to lost wages in cases where an individual has suffered a loss of income due to wrongful termination, discrimination, or personal injury.

A CPA as an expert witness plays a vital role in economic damages cases, providing invaluable expertise in assessing and quantifying the financial impact of various types of claims. Their comprehensive understanding of financial concepts, expertise in financial analysis and calculations, ability to provide objective and supportable opinions, and effective communication skills make them an essential asset to both plaintiffs and defendants in these matters.
At Joey Friedman CPA PA, we represent both plaintiffs and defendants in economic damages cases, offering our extensive experience and knowledge to help our clients navigate the complexities involved in determining and substantiating the damages they have suffered or have been claimed against them. Whether you require assistance in critiquing a plaintiff’s expert report, preparing your own expert report, or testifying about our work, our team is committed to providing the highest level of professional service and support.

This frequently requires:
Joey N. Friedman, CPA, ABV, M.Acc, MIB

Expert forensic accountant, witness and valuation professional

At Joey Friedman, we provide customized bookkeeping services that manage all aspects, including general ledgers, insurance reports, and payroll records.

Joey Friedman is well-known as a leader in his field for his knowledge, expertise and professionalism. Through a broad range of academic and real-life experience, Mr. Friedman can provide the guidance needed in a wide variety of business-related services. His ability to see each case from a variety of angles and identify the issues or inconsistencies that may need further investigation and inquiry, has made him an authority in the field. His strategic and tactical leadership has made his many businesses a benchmark for success in each of their respective industries.

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