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Investigation into loss of profits claim

Appointment Type: Expert Determination

Service Area: Loss of Profits

Industry: Other

Litigation Type: Other

Instructed by solicitors acting on behalf of the claimant, the business had been sourcing and distributing of products for a buying group for a number of years.

The business effectively ceased after securing a three year minimum supply contract, terminated in its first year due to the respondent’s errors. We reviewed the claimant’s initial calculation of loss of profits.

Our initial review noted that the majority of the claim was based on unagreed price increases at or about the time that the contract was terminated.

The client was unable to recover electronically their detailed sales and purchase records or definitive price lists. We identified the trading margins shown by the individual hard copy records demonstrating:

• the business had achieved the claimed improvements in overall margins;
• part of the claim was unsupported; and
• there were numerous pricing errors by the respondent.

We did establish, however, that the respondent had accepted certain individual losses. This enabled us to show that there was a significant loss which proved the fundamental viability of the claim.