During each phase of the process, we work as a team to provide our clients with the highest level of service. The below case examples provide some additional details about the work and analyses performed by TMF personnel.Commercial Damages
Breach of Contract (concert promoter): TMF was retained by counsel on behalf of a major arena promoter (defendant) to analyze breach of contract claims asserted against the promoter. The promoter entered into a multi-year agreement with a company to provide a worldwide ticketing service; the software company (plaintiff) alleged that the defendant improperly terminated the agreement after merging with a rival. The plaintiff set forth claims totaling hundreds of millions of dollars associated with lost profits from the agreement and additional losses from ticketing the plaintiff expected to perform for other concert promoters. TMF studied and critiqued the basis for the plaintiff’s claims, including analysis of an outdated and unsupported business plan and assessing competitors as well as differences in concert ticketing trends in different countries worldwide. TMF also analyzed the plaintiff’s cost structure and the defendant’s projected sales. TMF’s projected sales accounted for a decline in ticket sales that resulted from the global recession and other factors, which the plaintiff’s analysis did not reflect. Some of these factors included the different sales channels for concert tickets outside of the United States. TMF provided arbitration testimony in Europe. The arbitrator ruled in favor of the defendant and no damages were awarded.Class Action
Independent Contractor (parcel delivery company): TMF was retained to study damages related to the alleged misclassification of delivery drivers as independent contractors who claimed they should have been compensated as employees. The plaintiffs’ expert’s damage model calculated the income the drivers would have made if they were compensated as employees and compared that to the actual income the drivers made as independent contractors. The difference between the two amounts was presented as damages. One of TMF’s critiques focused on the determination of what the actual income the drivers made as independent contractors. The plaintiffs’ expert did not include in his calculation any gains related to the sale of a truck or a delivery route. TMF reviewed the plaintiffs’ tax returns to identify when sales occurred, the amount of the sale, and the net gain realized by the driver. This information was also input into the dynamic financial model created by TMF. TMF provided deposition and trial testimony in this matter. Intellectual Property
Patent Infringement (smartphone supplier): TMF consultants were engaged by a major smartphone supplier in a patent infringement matter. The plaintiff alleged that our client’s smartphones infringed its patents related to creating audio playlists, playing and streaming podcasts, MP3 decoding, as well as user interface technology, and photo/image processing. Plaintiff’s damages claim was for tens of millions of dollars. We researched and studied the smartphone market, including analysis of the factors, features and technologies that contributed to demand for our client’s smartphones. TMF personnel also analyzed the licensing histories of both parties, including over 100 license agreements produced by the smartphone supplier. Additionally, we reviewed contemporaneously prepared patent valuations, and analyzed royalty stacking and apportionment issues. We provided deposition testimony and the matter settled favorably for our client before trial.Government Contracts
TMF was retained by a large government contractor to assist with its development and defense of what became one of the largest commercial insurance claims related to a major hurricane. The hurricane heavily damaged our client’s facilities. Our client’s resulting insurance claim was made up of two parts: property damage to its facilities and lost profits/business interruption damages. For the property damage claim, TMF personnel developed database tools to help the client track its costs related to cleanup and repair of its facilities, procurement of new assets and equipment, leases and rentals, and other recovery costs. TMF personnel also assisted the client during its property damage negotiations with the insurance carrier by presenting analysis, summarizing costs incurred for various asset groups, and providing other information requested by the insurance company. TMF calculated a lost profits/business interruption claim, comparing what the company’s profits would have been “but-for” the hurricane to the client’s actual profits after the storm. TMF used the client’s accounting systems and contemporaneous financial books and records, including budgets forecasted before the storm, to develop the claim.
For additional examples of the diverse assignments we have worked on, please visit our Practice Areas