Why financial experts should explain themselves

Description

Abstract: In a recent personal injury case, a federal district court excluded a financial expert’s testimony regarding the plaintiff’s loss of future earning capacity, finding the expert’s methodology unduly speculative. But the Sixth U.S. Circuit Court of Appeals reversed and ordered a new trial on damages. Why? Because it found that the lower court had confused the concepts of lost earning capacity and lost earnings. This article explains why it’s critical for financial experts to provide the reasoning behind their damages calculations when they testify. Citation: Andler v. Clear Channel Broadcasting, Inc., 670 F.3d 717 (6th Cir. 2012)