Committing an expert faux pas – Internal reports too speculative in economic damages case

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Abstract: A calculation of economic damages (or value, for that matter) is only as reliable as the expert’s underlying assumptions about income risk and return. This article looks at a recent case in which an appeals court agreed with the defendant’s assertion that the internal projections and investor summary schedules used to obtain financing and attract equity investors were speculative and, therefore, generated unreliable damages calculations. Citrin Holdings, LLC v. Minnis, No. 14-11-00644-CV, May 9, 2013 (Tex. App. Houston 14th Dist.)