Case Study - Breach of Contract - Plaintiff
Issue at Dispute - Breach of contract lawsuit in Federal court, District of Connecticut. The plaintiff owns and operates a franchise development business associated with a nationwide medical company. The plaintiff purchased exclusive rights to a specified territory and is responsible for starting and operating franchises within the territory. The defendant is alleged to be in breach of contract due to preventing the plaintiff from opening new locations, opening corporate-owned locations within the plaintiff's territory, and ultimately terminating the plaintiff's agreement.
Our Role - We were hired by the plaintiffs' attorneys to evaluate lost business profits. As part of the franchise agreement, the plaintiff was responsible for opening a minimum number of locations per year, and had historically opened more than required. We evaluated lost profits for both the plaintiff's locations at the time of the termination of their agreement and the new locations they would have continued to open had the agreement not been terminated. We analyzed historical revenues, fixed and variable expenses, and industry expectations. The lost profits were in the tens of millions of dollars. We provided deposition testimony and successfully rebutted the defense's expert report.