Damages Calculation & Economic Analysis Flashcards

In a breach of fiduciary duty case involving an investment manager, damages are typically measured by:

Answer: The difference between the actual portfolio performance and the performance that would have been achieved with proper management

Breach of fiduciary duty by an investment manager is measured by the return the beneficiary was entitled to receive under proper management versus what was actually achieved.

When adjusting historical damages for the time value of money, pre-judgment interest is typically calculated from:

Answer: The date the injury or loss occurred to the date of judgment

Pre-judgment interest compensates the plaintiff for delay in receiving damages and typically runs from when the loss was incurred through the date of judgment.

In personal injury economic damages, the 'work-life expectancy' tables used by economists differ from standard life expectancy tables because work-life expectancy accounts for:

Answer: Periods of unemployment, disability, and retirement in calculating expected productive years

Work-life expectancy tables incorporate probability adjustments for unemployment, disability, and voluntary retirement, making them more realistic than simple life expectancy for wage loss calculations.

The 'total profits' approach versus the 'apportionment' approach in copyright infringement damages differs primarily in that apportionment:

Answer: Limits recovery to the portion of profits attributable to the infringing elements

Apportionment limits the plaintiff's recovery to the fraction of the infringer's profits causally attributable to the copyrighted work rather than other factors driving sales.

In antitrust damages under Section 4 of the Clayton Act, a successful plaintiff is entitled to:

Answer: Treble (3x) the amount of actual damages plus attorneys' fees

Section 4 of the Clayton Act provides for mandatory treble damages and attorneys' fees to incentivize private antitrust enforcement.

A financial expert calculating lost business value damages in a lost enterprise claim typically uses which primary valuation approach?

Answer: The income approach using discounted cash flow analysis

For going-concern business value, the income approach (DCF) is typically preferred because it captures the enterprise's future earning power, which is what was destroyed.