Our client had successfully operated a storage business for years. To unlock capital, they entered into a sale-leaseback agreement with the Plaintiff, selling the property with the contractual right to continue their business on-site. This strategic move was upended when the Plaintiff received a notice from the municipal government regarding a pre-existing water runoff violation. Despite the violation pertaining to a period before the sale, the Plaintiff wrongfully blamed our client and used it as a pretext to forcibly evict them from the property. To compound the injury, the Plaintiff then filed a lawsuit against our client, seeking over $400,000 in damages.
The client had run their successful storage business for many years prior to the property sale. The force evacuation of the property caused the client to move over 90 storage containers in less than 70 days. The client incurred specific financial damages as a direct result of the Plaintiff’s actions, which compelled the immediate cessation of operations and the forced, rapid liquidation of the company’s income-producing assets.
Our senior forensic accountant, a specialist in complex contract disputes, led the engagement. The core of our analysis was to isolate the financial impact directly caused by the plaintiff’s actions, specifically, the severe loss in value resulting from the forced, compressed sale of assets under duress. By applying the principle of fair market value, we demonstrated that the client was deprived of a standard market transaction. Our quantification revealed a net market value loss in excess of $300,000, even after accounting for the distressed sales proceeds
The clarity and rigor of our forensic report were instrumental in facilitating a swift, out-of-court settlement. The client’s legal counsel confirmed that our analysis provided the definitive quantification of damages needed to resolve the dispute efficiently, avoiding the cost and uncertainty of a trial.
This case study demonstrates our approach to calculating economic damages. Our firm provides comprehensive support for commercial litigation and fraud investigations. Explore our forensic accounting services to see how we can protect your interests.
