Why use an economic expert?

Because a skilled economist can provide valuable advice and counsel and generally increase the "value" of a claim and more than offset their fees by favorable outcomes for the client.

Are there minimal damages one should consider before hiring an economist?

This issue is subjective, but in general, if the case is worth at least $100,000 then it may be worth considering use of an economic expert. 

What factors are most important in choosing an economist?

1. Style...this is generally considered the most important single factor: how credible will this witness be in front of a judge or jury? Is the expert's demeanor convincing? Are questions handled well?
2. Costs...can the expected fees be justified; what are the risks of not hiring an expert economist?
3. Case Strategy...what type of case is this: intellectual property, personal injury, malpractice, security fraud, antitrust, breach of contract, or some other type?
4. Experience...credentials such as a degree from a noted university, a strong resume, academic affiliation are helpful, but less important than Style.

What does an economic expert actually do?
  - There are least two ways to answer this question. First, economists offer analysis consisting of several steps:

1. Develop a Theory of Damages...for example, the so-called human capital model lies at the core of many lost earnings cases, but it is not the only theory. The point is that the theory should be made explicit.
2. Conduct a "But-For" Analysis...what are mitigation earnings or profits...if the "event" had not taken place, what would be the results?
3. Use Appropriate Data and Information...examine the company or the individual in terms of industry, occupation, past and future outcomes, markets, and economic conditions.
4. Adjustments Required...depending on the case, the expert should consider the following factors: productivity, inflation, taxes, expected duration of loss, work-life and life expected of a person, time value of money, and similar factors.

The expert writes a report, cites sources, and attaches spreadsheet models and references.

How does an economist help litigation?
  - During litigation economic experts provide the following services:

1. Before Filing the Complaint... estimate economic damages; allow use of name for offensive purposes, e.g. use of resume and threat of raising the ante as "bargaining chip" to induce settlement.
2. Discovery Phase Activities...document production; data collection & review; damage estimation; review opposition expert's report; develop deposition lines of question for opposition.
3. Settlement & Pre-Trial Phase...presentation of economic damages; evaluate settlement offers; develop decision trees.
4. Trial Phase...prepare trial binder, including damages reports, question scripts, exhibits, background of expert; present testimony; develop lines of questions for opposition.

Who provides these services?

The Certified Public Accountant firm of Ginsburg, Cohen & Company.

About Ginsburg, Cohen & Company, Certified Public Accountants:

Ginsburg, Cohen & Company is a Certified Public Accounting firm that offers a wide-range of professional services.  In addition to Litigation Support, they also provide Auditing & Accounting, Small Business Service, Planning & Consulting, Personal Financial Planning, Business Valuation, and Taxation advice.

For more information, Ginsburg, Cohen & Company can be reached at:  www.gccocpa.com or:

12367 East Cornell Avenue

Aurora, CO 80014

303.337.4288

For cases that qualify, the cost of an Economic Damages Expert can be financed through an "Expert Lien" against the underlying legal claim without any upfront cost.