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Our Role
Trial
lawyers frequently require litigation services in the
preparation and presentation of financial matters. We provide a
full array of objective litigation services such as expert
witness testimony, case
strategy, analysis of financial matters, assistance in preparing
depositions and cross examinations, and structuring of
settlements. In addition, we assist attorneys by producing
courtroom aids and exhibits in order to effectively present
financial matters.
We provide litigation support for the following
actions:
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Compensation Damages:
Compensation lost as a consequence of accidents and
wrongful discharge. Damage determinations include salary
and fringe benefits. |
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Corporate Governess:
Testimony on responsibilities of shareholders, directors
and officers in corporate entities. |
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Corporate Veil:
Testimony on conduct of corporations in connection with
piercing corporate veil. |
| Covenant Not to Compete:
'Covenants not to compete' are an integral part of the
fair market value of a business. Such covenants
typically represent the value of business goodwill and
trade secrets which would be at jeopardy had it not been
for the presence of the 'covenant not to compete'
agreement. In the current business climate, a growing
number of key employees are leaving their positions and
starting new businesses by using the knowledge of former
employers. Accordingly, the breach of 'covenants not
to compete' is a highly litigated issue. The proper
valuation of such covenants upon the sale of a business
is a critical issue to shareholders of the business
since
it directly impacts the division of sales proceeds among
the shareholders. We have developed methodology to
value such covenants so that they are reflective of the
business that would be lost if the party did not have
such an agreement. |
| Dissident Shareholder
Actions: Our firm has worked on several cases involving
shareholder litigation and has provided litigation
services to attorneys in this connection, including: |
- Fair
compensation determination
- Valuation
of a minority shareholder/partner interest in accordance
with State statutes
- Fair
dividend determination
- Tax
consequences of shareholder buy-out
- Review
of management expenses
- Shareholder
oppression
- Breach
of fiduciary duties
| Divorce
Consulting:
Our firm has considerable experience
as divorce accountants. Some examples of that experience are: |
- Asset
discovery and analysis of financial affidavits
- Valuation
of business interests
- Valuation
of employee stock options or restricted stock interests.
- Analysis
of tax aspects of divorce settlements
- Structuring
settlements between asset and income division
so as to avoid double counting ("double dipping")
- Determination
of disposable income or earnings capacity
- Valuation
of pension and fringe benefit interests
| Fair Compensation:
Many
cases involve the determination of fair compensation for the
officers of a corporation. We utilize industry studies and other
data basis in order to determine the fair compensation of
officers. Executive compensation analysis is used in shareholder
oppression claims, taxation disputes, ESOP's and
establishing compensation policy. Mr. Walter
King's previous experience in human resources is an important ingredient
in
compensation cases.
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| Financial
Damages: Financial
damages may result from:
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- Breach
of contract
- Solvency
analysis
- Leave
fiduciary duty
- Patent
infringement
- Investor
fraud
- Business
interruption
& lost profits
- Minority
shareholder squeeze-out
- Personal
injury
- Violation
of non-compete agreement
- Employment
damages.
- Eminent
domain appraisals
We
have developed a methodology in the determination of damages
from lost profits. These computations usually involve projecting the
plaintiff's financial position and earnings, with and without,
the alleged acts of the defendant and applying a discount factor
to determine the present value of lost income. The
projections should be both objective and defensible and should
reflect the revenues less direct costs. The
discount rate should reflect the relative risks of the
business to the plaintiff and the court decisions in the
applicable jurisdiction.
| Intellectual Property
Infringement and Litigation: Damage determination
is often required for
infringement and breach of contract cases dealing with
patents, copyrights, trademarks and trade secrets.
Each of these assets is comprised of a "bundle of
rights" which include items such as term,
territory and commercialization. We also assist in
the establishment of royalty rates. Damage
determinations are typically done on the basis of determining value on a "but for egregious act"
basis and comparing that to value based on actual operations.
Intellectual property valuations differs from business
valuations, in that the former (i) has a limited life
which is typically set by the law approach and (ii) employs
the "value to the owner" as opposed to
"fair market value" used in valuing a
business. |
| Solvency
Issues: Solvency
questions often arise in bankruptcy and
litigation. Due to the depth of our financial
experience, we have reported on this question and
testified in that connection. |
| Receivership:
Courts
have appointed our firm as receiver in several cases. We
have the experience to manage assets, effectively protecting
their value and the income stream. With close supervision we
have been able to preserve the assets appointed, developing the
trust of creditors and parties involved.
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Fluent in Italian |
991
Post Road East, Fairfield County, Westport CT 06880
Tel(203)227-1414 Fax(203)227-4472
wckcpa@sbcglobal.net
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