Formulas for Calculating Damages, Second Edition / Edition 2 available in Paperback
Formulas for Calculating Damages, Second Edition / Edition 2
- ISBN-10:
- 1641054603
- ISBN-13:
- 9781641054607
- Pub. Date:
- 06/07/2020
- Publisher:
- American Bar Association
- ISBN-10:
- 1641054603
- ISBN-13:
- 9781641054607
- Pub. Date:
- 06/07/2020
- Publisher:
- American Bar Association
Formulas for Calculating Damages, Second Edition / Edition 2
Paperback
Buy New
$169.95Overview
These formulas can be applied to thousands of case scenarios and used to informally estimate the value of a case, to negotiate or mediate settlements, or to prove damages in the course of a trial. However, they also serve many other purposes: deciding whether to accept or reject a case, whether to hire an employee or retain a contractor, whether or not to sell a business, etc.
In 20 chapters, Formulas for Calculating Damages addresses basic rules and strategies - including calculating interest, measuring probability, the key rates of return, and financial ratios - and introduces the most fundamental formulas, then applies those formulas to the major practice specialties: personal injury and wrongful death, business cases, employment law, real estate, environmental law, bankruptcy, intellectual prop-erty, and family law. The last chapter provides a detailed examination of the retention of forensic experts and the top rules for using them strategically. Among the changes to this second edition are new Chapter 4 (Speed Math, Estimation, and Memorization) and Chapter 19 (Admiralty and Aviation Law Damages).
Product Details
| ISBN-13: | 9781641054607 |
|---|---|
| Publisher: | American Bar Association |
| Publication date: | 06/07/2020 |
| Edition description: | 2nd Edition |
| Pages: | 658 |
| Product dimensions: | 6.13(w) x 9.01(h) x 1.35(d) |
About the Author
He is admitted to practice in Massachusetts, New York, New Jersey, Pennsylvania, Maryland, Florida, Michigan, Kentucky, the District of Columbia, and the Commonwealth of the Northern Mariana Islands. He is also admitted as a solicitor of England, Wales, and Scotland. Based primarily in New Jersey, he maintains offices throughout the United States.
Mr. Guralnick has also taught law, political science, business, and media courses at Rutgers University, Ramapo College, the University of Denver, the Pennsylvania State University, and other schools. He has authored books in a variety of practice specialties ranging from employment law to interstate child custody litigation.
A graduate of Columbia University, London Business School, Bennington College, and other schools, Mr. Guralnick holds two MBAs, a Ph.D. in political science, an LLM in international law, a JD degree, and master’s degrees in public administration and in fine arts. Among his various leadership positions and appointments, he has served on the Board of Governors of the American Board of Professional Liability Attorneys and as chairman of the International Law Section of the New Jersey State Bar Association.
Table of Contents
Acknowledgments xi
Introduction xiii
Chapter 1 Overview 1
1.1 Why Use Formulas? 1
1.2 How to Use Formulas 3
1.3 When to Use Formulas 5
Chapter 2 The 10 Basic Rules 9
2.1 Rule 1: Due Diligence 9
2.2 Rule 2: Assumptions 10
2.3 Rule 3: Reliability and Verifiability 12
2.4 Rule 4: Risk of Change 13
2.5 Rule 5: Timing is Everything 15
2.6 Rule 6: Money Moves 17
2.7 Rule 7: Formula Value versus Settlement Value 18
2.8 Rule 8: Hidden and Missing Numbers 19
2.9 Rule 9: Fraud and Irregularities 20
2.10 Rule 10: Show Me the Money First 21
Chapter 3 Strategies and Myths 23
3.1 The Past and the Future 23
3.2 Faulty Trend Spotting 25
3.3 Footnotes and Attachments 26
3.4 Volatility and Smoothing Techniques 29
3.5 Creative Accounting 30
3.6 Off-Balance Sheet Liabilities 33
3.7 Earnings and Consumption Myths 34
3.8 Silly Shortcuts and Ridiculous Rules of Thumb 35
3.9 Experts and Formulas 37
3.10 Free Data on the Internet 39
Chapter 4 Speed Math, Estimation, and Memorization 45
4.1 Math with No Hands 45
4.2 Finding the Complement 46
4.3 High-Speed Addition 47
4.4 High Speed Subtraction 49
4.5 Rounding and Reversing 50
4.6 High-Speed Multiplication 52
4.7 High-Speed Division 56
4.8 Rapid Squaring 60
4.9 Shortcutting and Double-Checking 62
4.10 Percentage Power 67
4.11 Estimation Techniques 69
4.12 Memorization Strategies 73
Chapter 5 The Basic Formulas 81
5.1 Time Value of Money 81
5.2 Future Value 83
5.3 Future Value of an Uneven Cash Flow 85
5.4 Present Value 87
5.5 Net Present Value 89
5.6 Present Value of an Annuity 93
5.7 Present Value of a Perpetuity 94
5.8 Central Tendency 96
5.9 Moving Averages 102
5.10 Arithmetic Mean versus Geometric Mean 107
5.11 The Breakeven Formula 111
Chapter 6 Calculating Interest 115
6.1 Simple Interest 115
6.2 Compound Interest 117
6.3 Principal, Rate, and Time 119
6.4 Real and Nominal Interest Rate 120
6.5 Periodic Interest Rate 122
6.6 Effective Interest Rate 123
Chapter 7 Determining Probability 125
7.1 Single Event Probability 125
7.2 Multiple Event Probability 127
7.3 Dependent Events 131
7.4 Mutually Exclusive Events 133
Chapter 8 Rates of Return 135
8.1 The Basic Calculation 135
7.2 Return on Investment 136
8.3 Simple Annualized Return on Investment 138
8.4 Compound Annual Growth Rate 138
8.5 Cash Flow Method 140
8.6 Expected Rate of Return 141
8.7 Return on Equity 143
8.8 Return on Assets 144
8.9 Net Worth 146
8.10 Book Value 147
8.11 Internal Rate of Return 148
8.12 Net Terminal Value 151
Chapter 9 Helpful Financial Ratios 155
9.1 Earnings Per Share 155
9.2 Price-to-Earnings Ratio 157
9.3 Debt-to-Equity Ratio 159
9.4 Quick Balance Sheet Math 161
9.5 Dividend Yield 162
9.6 Earnings Yield 163
9.7 Quick Ratio 164
9.8 Interest Coverage Ratio 166
9.9 Price-to-Book Ratio 168
9.10 Inventory Turnover 169
9.11 Accounts Receivable Turnover 171
9.12 Accounts Payable Turnover 173
9.13 Current Asset Turnover 174
9.14 Current Ratio 175
9.15 Capitalization Rate 176
9.16 Benefit-Cost Ratio 177
Chapter 10 Handy Numerical Rules 181
10.1 Rule of 72 181
10.2 Rule of 70 182
10.3 Rule of 69.3 183
10.4 Rule of 78 184
Chapter 11 Personal Injury and Wrongful Death Damages 189
Lost Earnings 189
11.1 Putting the Basic Formulas to Work 189
11.2 Future Earnings Loss 190
11.3 Work Expectancy 194
11.4 Offset Approaches 200
11.5 Putting a Quick Value on a Case 204
Lost Fringe Benefits 205
11.6 Calculating Lost Benefits 205
11.7 Stock Options 211
11.8 Social Security Benefits 214
Damage Reducers 215
11.9 Estimating Personal Consumption 215
11.10 Estimating Taxes 218
Other Losses 219
11.11 Lost Household Services 219
11.12 Lost Advice, Counsel, and Companionship 222
11.13 Hedonic Damages 223
11.14 Emotional Distress 225
11.15 Pain and Suffering 229
Chapter 12 Business Damages 235
12.1 Determining the Best Formula 235
12.2 Sources of Information 238
12.3 Dissecting Financial Statements 243
12.4 What's Not in the Financial Statements 259
12.5 Forms 10-K, 10-Q, and 8-K 262
12.6 Applying Net Worth 272
12.7 Applying Shareholders' Equity 274
12.8 Applying EPS 276
12.9 Applying the P/E Ratio 280
12.10 Applying Rates of Return 285
12.11 Liquidity versus Indebtedness 290
12.12 Profit Margins 292
12.13 Devising Your Own Specific Business Ratios 295
12.14 Dealing with Professional Practices and Small Businesses 301
Chapter 13 Employment Law Damages 313
13.1 Statutory Damages Framework 313
13.2 Front Pay 316
13.3 Back Pay 321
13.4 Nonpecuniary Losses 329
13.5 Liquidated Damages 330
13.6 Punitive Damages 334
13.7 Prejudgment Interest 339
Chapter 14 Real Estate Damages 343
14.1 Origin of Property Damage Claims 343
14.2 Sales Comparison Approach 344
14.3 Cost Approach 348
14.4 Direct Income Capitalization Approach 351
14.5 Discounted Cash Flow Approach 357
14.6 Rental Loss Formulas 361
14.7 Income Loss Formulas 365
Chapter 15 Environmental Damages 373
15.1 Methods of Valuation 373
15.2 Change in Value 377
15.3 Restoration Costs 378
15.4 Replacement Costs 384
15.5 Hedonic Pricing Method 389
15.6 Travel Cost Method 391
15.7 Contingent Valuation Method 393
15.8 Total Economic Value 394
Chapter 16 Bankruptcy Risk 399
16.1 Bankruptcy Ratios 399
16.2 Working Capital to Total Assets 402
16.3 Retained Earnings to Total Assets 404
16.4 EBIT to Total Assets 407
16.5 Equity to Debt 408
16.6 Sales to Total Assets 410
16.7 Z-score Bankruptcy Prediction Formula 412
16.8 Cash Flow Ratios 414
Chapter 17 Intellectual Property Damages 423
[Patents] 423
Lost Profits 423
17.1 Conceptual Framework 423
17.2 Lost Sales 426
17.3 Price Erosion 430
17.4 Combined Losses 431
17.5 Future Lost Profits 433
17.6 Accelerated Entry Damages 434
Royalties 436
17.7 Reasonable Royalty 436
17.8 Analytical Approach 439
17.9 Weighted Average Cost of Capital 440
[Trademarks] 444
Valuation Methods 444
17.10 Overview 444
17.11 DCF Approach 445
17.12 NTV Approach 448
17.13 Replacement Cost Method 450
17.14 Market Comparables Method 453
Estimation Models and Rules of Thumb 455
17.15 Profit Split Methods 455
17.16 Premium Pricing Method 457
17.17 Scale Comparison Method 459
17.18 Return on Assets Employed 460
17.19 Shortcuts and Rules of Thumb 463
17.20 Other Techniques and Considerations 465
[Copyrights] 468
Statutory Damage Schemes 468
17.21 Actual Damages Plus Profits 468
17.22 Statutory Damages 471
17.23 Punitive Damages 473
Infringer's Accounting Methods 474
17.24 Full Absorption Costing 474
17.25 Variable Costing 475
Chapter 18 Family Law Formulas 479
Time Value Calculations 479
18.1 Division of Assets 479
18.2 Alimony and Spousal Support 486
18.3 Assessing Interest 490
Ratio Analysis 491
18.4 Debt-to-Asset Ratio 491
18.5 Liquid Assets to Take-Home Pay Ratio 495
18.6 Take-Home Pay to Debt-Service Ratio 498
18.7 Liquid Assets to Current Liabilities 501
Valuation Formulas 502
18.8 Actual Cash Value 502
18.9 Home Affordability Tests 503
18.10 Adequacy of Life Insurance 514
Other Useful Devices 516
18.11 Break-Even Analysis 516
18.12 Gross and Net Analysis 518
18.13 Wilcox's Prediction Formula 524
18.14 Pressing vs. Patient Liabilities 526
Chapter 19 Admiralty and Aviation Law Damages 529
19.1 Scope 529
Admiralty Law 531
19.2 Legal Framework for Admiralty Cases 531
19.3 Damages Available 536
19.4 Calculating Damages 539
Aviation Law 552
19.5 Legal Framework for Aviation Cases 552
19.6 Damages Available 558
Chapter 20 Forensic Experts 571
20.1 When to Retain an Expert 571
20.2 Educational Credentials 573
20.3 Certifications and Designations 578
20.4 Top 25 Rules for Using Financial Experts 595
20.5 Objections to Expert Testimony 602
20.6 Scientific Validity and Reliability 607
Tables
Worklife Expectancy 198
Mortality Tables 613
Day of the Year Tables 614
Index 617
About the Author 635