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February 2024
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Article:
Considerations in Selecting an Expert for Wrongful
Termination Matters
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As with other matters in which
financial experts are important contributors to a successful legal
team, wrongful termination cases can often hinge on the presentation of
a qualified expert. Choosing a forensic accounting professional who can
tip the scales in your favor is not always so easy. To aid legal
counsel in the selection process, it is useful to look at many factors,
including when to hire the expert, components in determining
compensation, key areas of contention, and options in experts available.
Hire Early in the Case
The starting point in any wrongful
termination dispute is whether there was a damaging event. Forensic
accountants rarely, if ever, contribute to establishing this part of
the case. However, that does not negate the importance of involving an
expert early in the case, in particular:
- A
financial expert can estimate the damages to assist the plaintiff
and/or their legal counsel in valuing the case.
- Most
law firms want the calculations done early in the case to prepare
for the possibility of negotiating a settlement without a trial.
Establishing the economic loss
sustained by the plaintiff as a result of wrongful or discriminatory
action is based on the loss of income and fringe benefits both before
and after trial. The calculation involves determining historic
(pre-trial) losses as well as projecting future losses. The losses are
mitigated by actual income earned in the historical period and in the
projected period. In addition to loss of income the damage calculations
will include other costs such as medical.
More Than Salary
Compensation is more than simply
salary or wages. There are several additional potential benefits
associated with employment that must be included in the calculation, if
applicable. These include:
- Employer
payroll taxes paid for the benefit of the employee such as social
security, unemployment insurance, workers compensation insurance,
and other state employment taxes
- Insurance
(medical, life, disability, etc.) offered by the employer on
either a matching or full-pay basis
- Payments
for holidays, sick days, vacation, paid time off, family and
medical leave pay, etc.
- Retirement
benefits including matching 401k contributions, defined benefit
plans, stock bonuses/ESOP's, cash balance plans
- Any
other expenses of the employer for the benefit of employees
Obviously, the financial expert must
have knowledge of, and experience with, understanding the existing
compensation elements and structure of the employer at the time of
injury. A miscalculation of any of the above elements can have a
material effect on total damages.
[Read
remainder of article ..]
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Practice Profile:
Forensic Accounting Services for Contract Disputes
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Arxis Financial's "Forensic Accounting"
practice offers a particular focus on quantifying the financial and
economic issues in contract disputes. Our experience with breach of
contract cases includes a wide variety of industries. We have completed
analyses of losses arising from disputes such as supplier-purchaser
contracts, partnership agreements, leasehold and other commercial real
estate agreements, e-commerce transactional disputes, warranty
fulfillment, construction contracts, and other breach of contract
matters.
Arxis Financial's
professionals are experienced in detailed investigation and analysis
that is necessary to uncover essential facts and provide meaningful
insights. We can perform an analysis to calculate lost revenues, lost
profits, lost opportunities, and unjust enrichment. We also provide
assistance in the defense against such claims. Expert analysis and
conclusions are presented in depositions and trial at local, state and
federal court levels as well as mediation and arbitration. We assist
attorneys in interpreting the data and help counsel to understand and
analyze events or issues as they develop the case and prepare
discovery. Clients are pleased with Arxis Financial's abilities to
clearly, persuasively, and accurately present economic and financial
evidence and opinions.
TheForensic
Accountingpractice is headed by partner Chris
L. Hamilton, CPA, CFE, CVA. Mr. Hamilton is a Certified Public
Accountant, C7ertified Fraud Examiner, and a Certified Valuation
Analyst. He is a licensed life and disability insurance agent and a
General Securities Representative. Mr. Hamilton has published articles
in several publications, and has made presentations at national
conferences, training institutes and seminars on topics including
forensic accounting, fraud and business appraisal.
If you have any questions about Forensic Accounting Services for
Contract Disputes, please feel free to contact
us.
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Speeches:
Upcoming Speaking Engagements for Chris Hamilton
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Chris Hamilton's upcoming presentations include:
- ""Not
All Experts are Created Equal," American College of Business Court Judges —
webinar (February)
If you are interested in asking Mr.
Hamilton to speak at your organization's upcoming meeting, please feel
free to contact him.
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