Professional Services
FRP Advisory
Full Credential Description
we was engaged as an accounting expert by a national logistics firm to defend against a loss of profits claim from a provider of temporary HGV drivers. The claimant alleged a breach of contract regarding an exclusive agency agreement for driver supply, claiming significant lost profits and wasted expenditure due to this breach.
In response, we's Forensic Services team developed a comprehensive forensic accounting report that evaluated the damages claimed. They identified multiple areas where the claimant had exaggerated its losses, particularly in the calculation of lost profits. A detailed lost profit model was created, which allowed for adjustments based on varying assumptions, thereby clarifying the financial impact of the alleged breach. Additionally, the team pinpointed errors and inconsistencies in the claimant's calculations related to wasted expenditure, which provided a basis for effective cross-examination of the claimant's key witness during the trial.
The outcome of the case was favorable for the logistics firm; the judge ruled that no agreement existed between the parties, thus no breach of contract had occurred. The claimant's evidence was deemed not credible, resulting in them receiving minimal damages and being ordered to pay 95% of the defendant's legal costs. This case exemplified the effectiveness of we's forensic analysis in reducing disputes to key issues and supporting a successful defense.