Loss of Profits Claim by Car Dealership
An executive car dealership operating on a franchise basis claimed for a shortfall in profits after relying on sales forecasts supplied by the representative of the car manufacturer. Sim Kapila carried out a critical analysis of the representative’s sales forecast; a central aspect of the claim was the extent of the geographical area of the claimant’s dealership implicit in the forecasts. Our report quantified the aggregate loss at approximately £700,000 and resulted in an agreed settlement of approximately £500,000.
Loss of Profits Claim by a Newspaper
A national newspaper suffered a loss of production as a result of the faulty refurbishment of production machinery. It managed to arrange additional sub-contract printing but was unable to complete its normal print run for two weeks. George Sim produced an estimate of the resulting loss of profits following instructions from solicitors representing the newspaper. As a result of his report, there was a settlement for a significant amount.
Loss of Profits Claim Against a Building Contractor
A firm of auctioneers claimed a significant amount from a firm of building contractors for loss of profits resulting from alleged damage to the auctioneers’ premises. Rakesh Kapila, upon instructions from solicitors acting for the defendant, highlighted the lack of evidence underpinning the sales growth assumptions on which the claim was based. It also appeared that the reasoning behind various parts of the argument on quantum was flawed. The issues raised by Rakesh resulted in the claimant subsequently deciding not to pursue the claim.
Loss of Profits Claim Against Local Authority
Sim Kapila were instructed on behalf of a local authority concerning a claim by a building contractor arising from a dispute relating to alteration work undertaken by the claimant at a primary school. We prepared a report which was considered by an adjudicator in conjunction with a report prepared on behalf of the claimant. Our report contended that the claim for lost profits was not subject to adequate scrutiny and was not supported by reliable documentation. Oral evidence provided by Rakesh Kapila at an adjudication hearing assisted in the claimant’s loss of profits of close to £1 million being reduced by more than 80%.
Breach of Warranty Claim
An established motor vehicle dealership company purchased the entire share capital of a competing business after taking into account oral representations on the net assets of the business. A report prepared by Sim Kapila established the extent to which the net assets of the acquired company had been overstated at the completion date and computed the purchase price which would have been payable if the vendor’s representations had reflected accurately the financial position of the business. The High Court awarded significant damages to the claimant on the basis of Sim Kapila’s report.
Valuation of Care Homes Business
Sim Kapila were instructed to consider the value of a minority shareholding in a company which was involved in the provision of rest home facilities for the elderly following the issue of a petition by the minority shareholder seeking that its shares should be purchased at a fair valuation. The purchase of the minority shareholding was concluded on the basis of our report on the valuation of the operating company after taking account of various scenarios such as the application of a minority shareholding discount and the closure of the operating business.
Retiring Partner’s Interest in Solicitors’ Practice
Sim Kapila were instructed by a partner who had retired from a medium-sized solicitors’ firm to compute the amount owed to him on retirement. Our review of the partnership agreement highlighted that a careful evaluation was required of the firm’s work-in-progress to compute the partner’s outstanding profit-share on retirement. Based on our consideration of the firm’s accounting records, we were subsequently involved in a mediation hearing at which it was accepted that the firm owed an amount to the retiring partner and that he had no liability to the firm. Following the mediation hearing, a settlement was reached on the basis of an agreed amount payable to the retiring partner.
Claim by Senior Public Sector Employee
The purported dismissal of a senior public sector employee was quashed by the court. We quantified the former employee’s claim for loss of earnings and pension rights. Our work included a consideration of her complex pension arrangements.
Claim for Lost Pension Rights Against NHS Trust
A senior manager was made redundant by an NHS Trust, obtained a similar job and claimed against her former employer for lost pension benefits. The defendant’s solicitors instructed Sim Kapila to quantify the claimant’s benefits from the former and the new jobs. Our assessment of her loss was accepted by the claimant’s representatives and the tribunal.
Professional Negligence Claim by Lending Institution
Sim Kapila were instructed by solicitors representing a lending institution to review an income reference provided by a firm of chartered accountants in connection with a mortgage obtained by one of its clients. Sim Kapila concluded that the firm had exercised inadequate skill and care in providing the reference and assisted the lending institution in obtaining settlement for a large proportion of the amount lent by it.
Security for Costs
Rakesh Kapila was instructed to prepare a report concerning the financial affairs of a newspaper company, the claimant in an action against a number of individuals. The report concluded that the company would, subject to updated information showing otherwise, be unable to fund the defendants’ costs and assisted them in obtaining a payment into court.