Fight the Battle on Two Fronts – Liability and Damages
14 February, 2012-
Kevin Flaherty -
USA
Plaintiff and Defense attorneys are guilty! Guilty of waiting until the last minute to address areas of damages. MDD is very often retained in litigation engagements when the measurement of damages takes a back seat to liability and causation. Although attorneys often rely upon experts in the areas of damages, it is very important that the damages receive the same due diligence as liability etc. This is true for both plaintiff and defense positions. Due diligence means assuring that the expert obtains all the information available to support the expert opinion. Unfortunately, it is often the case that the expert must testify with limited information because damages were not focused on until too late in the litigation process [i.e. discovery closed, or very short deadline for expert reports etc.]. It is prudent to involve your financial expert/consultant as early as possible so they can be fully prepared.
What is a Forensic Accountant?
A forensic accountant assists counsel by looking behind the numbers – the how’s and why’s of column after column of figures. You may have heard of forensic accountants, but have no idea how a forensic accountant is any different from the CPA who prepares your tax return – and how he can help you in the courtroom. Enron, Tyco, WorldCom and others were clearly cases for forensic accountants, but what about the case you’re working on right now?
Similar to attorneys, there are many types of accountants – tax accountants, audit accountants, cost accountants, bookkeepers, certified public accountants. Sufficient to say, just as all attorneys are not trial lawyers, not all accountants are forensic accountants.
Simply based on its root words, the basic definition of a forensic accountant is fairly obvious: “Forensic“, means specializing in the application of scientific knowledge to legal matters; and the word “accountant”, refers to a trained individual whose work is to inspect, keep, or adjust accounts.
True to its definition, the forensic accountant is distinguishable from others in the accounting field because he possesses a valuable combination in the courtroom: The technical accounting background necessary to determine and analyze the relevant accounting records blended with a familiarity of the litigation process such as discovery, deposition, expert reports, interrogatories, Daubert/Tokimo and federal rules of civil procedure.
A forensic accountant can help identify and locate the information you need to build or bolster your case. Forensic accountants understand that during the course of litigation, as well as during the time period prior to filing suit, each step must be carefully calculated and strategized so that counsel can control and develop the litigation process and, ultimately, the outcome of the case. A forensic accountant readily interprets financial data, understanding its significance to each particular case.
A qualified forensic accountant is also prepared to deal with the intricate legal system, aware of the differences between an expert and consultant, familiar with appropriate file maintenance, the distinction between deposition testimony vs. trial testimony, and is prepared to meet time-sensitive deadlines.
Many attorneys and lay people have a rudimentary knowledge and/or understanding of financial records. However, when handling matters involving questions of financial relevance, more than a rudimentary understanding is required. To best serve the client, and to properly develop the case, a detailed analysis of relevant financial data is required. In fact, identifying the records to be analyzed is paramount to proper preparation of the case.
Financial statements can appear to be relatively innocuous and straightforward. It is important to realize that financial statements are summaries of financial data usually, but not necessarily, presented in accordance with generally accepting accounting principles (GAAP). What many do not understand is that there are various levels of detail in support of the summary documents. GAAP is learned knowledge establishing the requirements for entering financial information on financial documents. A forensic accountant knows how to interpret the data and unveil the story behind the records. For example:
- On the books is a piece of equipment recorded at $40,000. Most lay people believe the equipment is worth $40,000. But in actuality, GAAP requires that such items be recorded at historical cost, which is the price that the company originally paid for the item. A trained accountant will highlight this and point you to the detailed fixed asset register to determine the date of purchase and its purchase price, including all the associated costs for installation, etc.
- A company provides stock options to employees. Are the options expenses to the company? Are they income to the employee? What is the cost of an option? Currently, stock options are not recorded on financial statements, and are not income to recipients until they are executed. This can be a substantial hidden asset in determining an individual’s worth and/or his ability to pay. Because of their “hidden nature”, stock options are currently under scrutiny in the corporate financial world.
- Patents and copyrights are also recorded as an asset. Again, a forensic accountant will identify the parameters used in recording this asset on the books. Also, certain forensic accountants may also have the ability to value the intangible asset.
- Inventories on the books can be valued based on last-in-first out [LIFO] or first in first out [FIFO]. This is not clear to the layperson. However, during a period of rising or declining prices the method selected can misstate the current value of the inventory and profits of the company. Also, switching methods makes a comparison of yearly results inconclusive
- A furniture store makes a sale today and takes a deposit. If the product is ordered and delivered in two months, when does the company “book the sale”?
- A costume jewellery manufacturer sells to a large retailer at $5 per unit. Is this the actual selling price? Maybe not, since most large retailers “charge back” the customer if the product does not attain the planned sell-through at the suggested list price to end consumers.
There are many other areas of financial records that a forensic accountant that is trained to look behind the numbers can provide clarity to.
How can the Forensic Accountant Assist in Case Management?
Often counsel is faced with the difficult task of investigating the merits of a case, while the client is sensitive to cost. A forensic accountant can quickly digest the facts of complicated financial cases, and work with counsel to design scope for testing the assumptions or suspicions. For this reason, it is critical to retain the forensic accountant during the discovery process – not after all the documents have been identified. The forensic accountant knows the key accounting documents that will allow an efficient assessment. Further, he knows the strengths and weaknesses inherent in certain accounting documents. The forensic accountant assures that the appropriate documents are obtained during discovery as he is familiar with the case and the accounting records and can provide the appropriate terminology to assure the necessary documents are requested during discovery.
As the discovery process moves forward it is often the case that counsel is inundated with volumes of disorganized records. A forensic accountant can ascertain the relevant documents in a timely efficient manner as well as determine any missing documents. The accountant that is already versed in the case will utilize the “bulls-eye” approach to examine the documents. This approach allows the forensic accountant to analyze top-level summary reports. Feedback is provided, and then counsel and the accountant can determine if the next level of analysis is warranted. Ultimately, very detailed “bulls-eye” information is analyzed if the facts of the case warrant such. The advantage of this technique is that counsel is obtaining periodic feedback and counsel and the client can make timely decisions based on the cost/benefit to the case.
Prior to the deposition, counsel should have the forensic accountant brainstorm and provide a list of questions for additional follow-up. Obviously, different cases and different attorneys warrant different strategies at deposition. The forensic accountant will merely provide a list of inquiries and counsel will determine if the inquiries are appropriate for the deposition.
The forensic accountant also should be included in the depositions of other experts and fact witnesses to help identify opportunities to obtain important clarifications of relevant financial data that would assist him in his conclusions. If the forensic accountant is not present during these events, there may be missed opportunities to inquire as the availability of documents that were not provided in discovery. Finally, it is critical for the forensic accountant to attend the deposition so that during breaks he can provide feedback to counsel. A trained forensic accountant is aware that he is not an active part of the deposition, and should only interact with his counsel.
A good forensic accountant can also quickly analyze the damages and identify inherent weaknesses in the damage measurement that might not have been apparent to his or her client. If early settlement is the objective, such information will assist the attorney in settlement strategies and may save time and money.
Let’s now take a look at how real issues were resolved using a forensic accountant:
- You just spent the last two years in discovery, deposition, and settlement discussions, including a multi-day mediation, and finally, you have your day in court. After a very arduous trial, a jury awards your client $2m. However, the celebration is short-lived as the defendant company declares they do not have the ability to pay the award, and will be filing bankruptcy. Now what? The forensic accountant you retained assisted in discovery and requested the accounting source documents that demonstrated that the defendant had utilized various means of siphoning off cash to create illiquidity. He discovered bonuses paid to family member executives. He discovered gratuitous payments to other corporations that had common owners. He discovered the change from FIFO to LIFO inventory, the impact was to show less profit on the books vs. prior years.
- Your client is a shareholder of a family-operated business. Her brother is also a shareholder and became CEO after the father died three years ago. Your client feels her brother is living the “high life” while her semi-annual dividend check has been dramatically reduced. The CEO brother has indicated that the business is not doing well. Your client thinks her brother is lying or cooking the books. Now what? Counsel did not contact a forensic accountant until after the discovery was closed. Counsel assumed he could handle the discovery and requested everything that might be applicable. Unfortunately, counsel received everything that was requested, and a conference room full of banker boxes was provided. Counsel retained a forensic accountant to examine the information but the client was concerned with fees. Therefore, a bulls-eye approach was utilized by the forensic accountant. The accountant analyzed top-level statements and determined that the business had become less profitable. However, the accountant recommended further analysis in attempt of ascertaining the cause of the reduction in profitability. It was determined that certain large customers were no longer conducting business with the subject company. This fact was pursued in the CEO’s deposition. He indicated the customers had gone to a competitor. When the name of the competitor was researched it was determined that it was owned by the brother. Lastly, the accountant discovered substantial disbursement to a computer consultant. The amounts were out of line with previous years and excess for the size of the business. The accountant researched the consultant and discovered the company address was the brother’s home. The accountant testified to all of these facts in state court clearly demonstrating that the brother was rerouting business to his solely owned business.
- You are defending a client being sued when an individual hurt himself in the store. The individual has presented copies of his W-2’s demonstrating the loss of earnings. But it is your understanding that he is self-employed and should not have W-2’s? Now what? The forensic accountant you contacted educated you as to how a “self-employed” individual may still receive a W-2 if the entity is a C or S corporation. The accountant then recommended that the individual be questioned in his deposition/trial as to if he was still working [he was], and who determined the W-2 salary [he did]. The accountant testified that there was no loss because the reduction in W-2 wages resulted in an increase in profit for the company owned by the claimant and that the reduction in W-2 wages was a manipulation by the plaintiff.
Summary
Enron, Tyco, WorldCom and other recent scandals have illustrated the need to look behind the numbers of financial statements. These cases have provided some sex appeal [believe it or not!] to the Forensic Accounting field. However, it is important to realize that there myriads of smaller less high-profile cases that require forensic accountants. Forensic accountants may be called upon when litigation involves financial statements because there are stories within the financial statements that may not be clear to lay people.
In summary, the challenges of proving a case involving sophisticated financial analysis can be greatly alleviated with the assistance of an effective forensic accounting expert. Such an expert can serve as a consultant, providing invaluable preliminary insight and advice, or if needed, an expert witness whose opinions are presented convincingly to an opponent.
By Kevin Flaherty.
The statements or comments contained within this article are based on the author’s own knowledge and experience and do not necessarily represent those of the firm, other partners, our clients, or other business partners.
Articles
Relevant Articles
Our experts are extremely knowledgeable about thier subject areas and often write educational material and commentary on topical issues they come across.
Beyond the Fraud Triangle: Navigating Fraud Risks in Today’s Business Landscape
FRAUD. A five-letter word with consequential effects on individuals, organizations, and the economy as a whole. Fraud can be defined as an intentional act of deception in order to acquire something of value, whether it be a personal or financial...
How to Tackle Employee Fraud
Picture this, you, CFO, are sitting at your desk when an anonymous letter arrives alleging that employee X has been committing fraud against your company. Your first thoughts might be disbelief, anger and betrayal. You may question your relationship with...
Fraud Fighting 101
While I consider myself a pacifist, as a forensic accountant, I have been occasionally referred to as a fraud “fighter”. So, in the spirit of International Fraud Awareness Week (November 13 to 19, 2022), I would like to share some...
ESG Disputes and Business Valuation
Environmental, Social and Governance (“ESG”) factors have gained increasing importance in recent years as society has become more aware of how corporate conduct affects stakeholders, the environment and humanity at large. From issues such as climate change to socially responsible...
Peloton Recall of Tread+ and CPSC in Protecting Consumer Safety
The Consumer Product Safety Commission (CPSC) in the US works with standards organisations, manufacturers, and companies to develop voluntary safety standards, warn the public of products that present significant risks to consumers and enforce mandatory standards or banning consumer products...
Business Valuation, Growth Rates and Climate Change: a Case Study of Vail Resorts
This past summer’s heatwaves and wildfires served for many as alarming reminders of climate change. Hotter summers, colder winters, and more hurricanes are amongst the symptoms of a changing global climate[1]. These climatic effects will impact different businesses in different...
Trends in Food and Beverage Related Product Recalls
Numerous large-scale product recalls have captured national, if not global, media attention. One example is the 2008 salmonella outbreak linked to products manufactured by the Peanut Corporation of America. This incident involved the recall of more than 4,000 products produced...
COVID-19 and Fraud Claims
COVID-19 has sent shockwaves throughout much of the insurance world. Insurance company stocks have been some of the worst performing since the virus went, well… viral, in anticipation of declines in profits due in part to COVID-related claims. Much of...
COVID-19’s Impact On Business Valuation
This is the second blog post co-authored by MDW Law Partner, Christine Doucet, and MDD Forensic Accountants Partner, Jarrett Reaume, addressing various aspects of COVID-19’s impact on business owners and family law issues. Their first blog post was “Guideline Income...
Is Kylie Jenner a Billionaire, or Even Close? Part III
I hope this will be the final installment in this series, but one never knows. Back in the summer of 2018, I wrote a short piece questioning a sensational Forbes magazine article claiming that Kylie Jenner was worth $1B, based mainly...
Fraud in the time of COVID-19: Proactive steps to mitigate fraud risk
As the markets react to each update on COVID-19, a quote from Warren Buffet has seen increased circulation: “Only when the tide goes out do you see who’s been swimming naked”. The current environment has seen increasing news of corporate...
Is Kylie Jenner a Billionaire, or Even Close? Part II
A little over a year ago, I wrote a short blog post taking issue with a Forbes magazine article that had concluded that Kylie Jenner's net worth was around $900 million. In light of last week’s news that Coty Inc., a publicly traded cosmetics firm, is...
How Forensic Accountants Can Help You Manage and Effectively Resolve Litigation Cases
If you have not worked with forensic accountants before, an understanding of what they do in litigation support and how they differ from other accountants may be surprising to you. Modern television dramas’ common use of the word “forensic” may...
Calculating Insurable Value and the Limits of Liability for Rental Properties
It’s not easy to find a rental apartment these days. Vacancy rates for residential apartments in Canada’s largest cities are at record lows. The country’s 10 most populated metropolitan areas saw their average vacancy rates decline by a collective 10%...
Adding up Cost of Construction Delays
No one likes delays. Whether it’s a rain delay at a sporting event or a subway delay stuck somewhere beneath the city of Toronto, delays cost us time that we would rather have spent doing something else. Sometimes, however, delays...
“Frenemies”: Is your organisation in bed with Brutus?
A growing area of concern for corporates is the proportion of fraud committed by “frenemies”, an encompassing term for the third parties a company works with on a day-to-day basis. This includes suppliers, agents and consumers: entities with which a...
The Better Way – Tips For Implementing Controls To Prevent Fraud
Last week, the Auditor General of Toronto issued a report estimating that in 2018 alone, the TTC lost $61 million due to fare evasion. As both a frequent rider of the TTC and a forensic accountant specializing in fraud investigations, I...
Financial Losses Resulting from LRT Construction
Introduction Some days it seems like you can’t go anywhere in Ontario without running into a light rail transit (“LRT”) project. Projects are either underway or imminent in Toronto, Hamilton, Ottawa and right here in Mississauga along Hurontario Drive. While...
Fraud and Corruption: How Culture Impacts Effective Risk Management
The Fraud Triangle: Rationalisation, Opportunity and Pressure Any elementary student of fraud will be aware of the “Fraud Triangle”, a theory developed by Edwin Sutherland and Donald Cressey. This theory posits three elements of fraud: Rationalisation (the ability of the...
Product Liability Claims: How can a forensic accountant assist in the claims process?
There are many different types of liability cover available to business owners including D&O liability, professional indemnity and public liability amongst others. However, from a claims perspective, one of the most common types of cover we come across is that...
Buying Shares in an NFL Player? Business Valuation Principles Still Apply
In my last post, I argued that an investor in Kylie Jenner’s cosmetics company was essentially investing in Ms. Jenner’s personal brand, and that the earnings stream for that brand was of a finite life. The post got me thinking:...
Forensic Accounting Liability Exposures
The below article first appeared in THE STANDARD, New England’s Insurance Magazine. It features excerpts from a presentation given by MDD partners Paul McGowan, CPA, CVA and Jon Ducey, CPA, CVA on the topic of liability claims and other key...
The Unique Perspective of a Certified ‘Forensic CPA’ Arbitrator
Alternate dispute resolution (ADR) is any procedure that is used in matters that would otherwise be settled in a court of law. Examples of ADR include arbitration, mediation, appraisal, and mini-trial. ADR is a dispute resolution strategy with applications to...
Is Kylie Jenner Really a Billionaire, Or Even Close?
A few weeks ago, Forbes created a social media storm when it proclaimed that Kylie Jenner was poised to become the world’s youngest self-made billionaire. Many thumbs were worn out debating the appropriateness of the term “self-made”, and apparently a GoFundMe page...
Valuing a Franchise System
Valuing a franchise system, or “franchisor”, is in many ways very similar to the valuation of any other type of business; it is a function of the forecasted levels of cash flows that the business will generate, and the risk...
Fidelity / Fraud Losses: Forensic Investigation and Loss Quantification Concepts
A fraudster’s gain is someone else’s pain – or loss; but is the corporate fraudster’s gain always the same as the insured’s financial loss? Are the financial implications of the fraud always the same as the actual loss to an...
How Much Is Your Business Worth?
As a Chartered Business Valuator (CBV), almost every business owner I meet wants to know the answer to this question: “How much is my business worth?” There can be many reasons for asking this question: they may be planning to...
Liability: When Do the Numbers Become Important?
This month MDD focuses on liability claims and looks at the benefits of getting the right technical accounting expert engaged early on to stress test quantum. What you will learn from reading the article include: How early involvement provides better...
What Type of Business Valuation Do I Need?
In my previous article, I discussed the critical need for business owners to have their business valued by a professional appraiser. In this article I will discuss the two types of business appraisals that you might want to consider. Calculation...
Should I Have My Business Valued?
What's so important about having a valuation of my company? Small business owners spend most of their time IN THEIR business and not ON THEIR business. Further, they view expending money on getting a professional valuation performed as a completely...
How to Protect Your Business Assets – What You Should Know
The most common response I hear from business owners who are victims of employee fraud is “I never thought this would happen to me”. Employee theft, especially in the automotive industry, is common, because small businesses such as car dealerships...
Business Valuations & Why It Pays To Use Genuine Experts
The Basics Assets have value if they will give rise to future economic benefits. For businesses, these future economic benefits take the form of either the expected net income stream or the amount that could be realised in the short...
Gift Cards and the Illiquidity Discount – A Valuation Perspective
With the busiest season of the year for retail sales upon us, you are no doubt wondering what to buy for that special someone. If you’re reading this blog – and I have every reason to believe you are –...
3 Tips On How To Protect Your Firm From Fraud & Internet Theft
While we’re thinking about turkey and cranberry, an important business holiday will come and go – not with the same fanfare as Thanksgiving perhaps but with significant potential for preserving the business future for those who take note. During International...
I Lost My Customers and It’s Your Fault!
In Schwartz Levitsky Feldman LLP v. Werbin, 2015, an action was put forward by Schwartz Levitsky Feldman (SLF) claiming loss of profits due to the departure of Mr. Werbin. The firm contended that they purchased Werbin’s clients when they purchased...
Patent Infringement Judgment – Non Infringing Alternatives
The Federal Court of Appeal has issued a ruling that could have wide-ranging consequences for the calculation of patent infringement damages. In Apotex Inc. v. Merck & Co., Inc., 2015 FCA 171, the FCA rejected the trial judge’s ruling (Merck...
The Dividend Double Count
In this post, I touch on a common error I encounter in dealing with a financial analysis of multiple companies owned by the same group or individual. I call this error the “dividend double count”, for reasons that will become...
Adding up the Damage: Lost Profits vs. Business Value
When a business is destroyed as a result of wrongdoing, there are two commonly used methods by which the plaintiff’s damages may be measured. One method is to appraise the value of the plaintiff’s business at the date of loss;...
Court Breaks with Apportionment
The case of Varco Canada Limited v. Pason Systems Corp., 2013 FC 750 (CanLII) involved an award of over $52M based on an accounting of the defendant’s profits. Perhaps more importantly, the decision sheds light on a number of conceptual...
Calculated Risk: A $75M Award Adds Urgency to Pre-Judgment Interest Considerations
Pre-judgment interest is often the last thing litigants ponder. A recent award of $75 million in pre-judgment interest in Eli Lilly v. Apotex, 2014 FC 1254 (“Cefaclor”) may change that. Cefaclor involved the infringement of patents for an antibiotic. Damages...
Personal Injury Losses and the Self-employed: A Business Valuation Perspective on Labour & Capital
Business valuation concepts can be critical for the proper quantification of personal injury damages, particularly in the context of self-employed individuals. Business valuators are commonly called upon to assess the fair market value of small, owner-managed businesses. One of the...
5 Ways You Should Be Using Your Financial Expert
Moore v. Getahun 2015 ONCA 55 is a case that has already generated a lot of discussion and navel gazing in both the legal and expert communities, and I hesitated for quite a while before deciding that I had anything worthwhile to...
Financial Statements, Disclosure and the Arthur Wishart Act
The topic of what types of financial statements must be included in a disclosure document in order to comply with the disclosure requirements of the Arthur Wishart Act (“AWA”) was discussed at a recent dinner put on by the OBA’s Franchise Law section....
Tax Rates, Timing and Damages
In Canada, as a general rule, damages awards are subject to the same tax treatment as the monetary amounts they are meant to replace. For example, awards for lost profits are taxed as business income [1]. Litigation can often take...
Dunkin’ Donuts c. Bertico inc., Part II: Lost Profit & Loss of Business Value
Towards the end of its decision in Dunkin’ Brands Canada Ltd. c. Bertico inc.2015 QCCA 624, the Quebec Court of Appeal discussed the issue of whether an award for both a) lost profits up to 2005 and b) loss of business...
Dunkin’ Donuts c. Berticoinc, Part I: The Benchmark Approach to Lost Profits
In April 2015, the Quebec Court of Appeal released its decision in Dunkin’ Brands Canada Ltd. c. Bertico inc. 2015 QCCA 624. The Court of Appeal upheld the trial judge’s ruling (Bertico inc. c. Dunkin' Brands Canada Ltd., 2012 QCCS 2809) that...
Untying the Knot: A Forensic Accountant’s View of Divorce Proceedings
During the course of matrimonial disputes, there are often situations where solicitors find it helpful to engage specialist investigators and appraisers. In particular, forensic accountants can help to provide the court with a clearer view of the true financial position...
Mining Industry Revisits Anti-Corruption Procedures
Mining companies should take note of Canada’s stricter penalties and more aggressive enforcement of anti-corruption laws and make sure their anti-bribery compliance procedures are up to speed, lawyers, forensic accountants and mining executives warned at a recent conference in Toronto....
Rescission under the Ontario Arthur Wishart Act: Quantifying the Remedy
It has now been thirteen years since the Ontario Arthur Wishart (Franchise Disclosure) Act, 2000, SO 2000 [1], was enacted. The Act, named after Arthur Wishart, a Conservative MPP who championed the rights of franchisees in the 1970's and 1980's,...
Proving Rescission Damages under the Provincial Franchise Acts
In October 2012, the Manitoba Franchise Act was proclaimed into law. The legislation, like its counterparts in several other provinces (including Ontario’s Arthur Wishart Act), provides franchisees with the right to rescind a franchise agreement within two years if a...
A New Take on the Accounting of Profits Remedy
The Federal Court’s decision in Merck & Co. v. Apotex Inc. [2013] F.C.J. No. 840, has shed a novel light on to how damages for patent infringement are to be calculated. Previously, in its decision in Monsanto Canada Inc. v....
Accounting For Attorneys
It is becoming increasingly important for attorneys to understand financial statements and their relevance to various types of business and legal situations. The non-accountant attorney will greatly benefit from a basic understanding of the key principles of accounting. Equally important...
Financial Statements are Friends not Foes
Discovery is under-way. The records are starting to flow. As you leaf through a box of documents just delivered, you pull out a stack of financial statements and, like so many other attorneys, you cringe. As you scan through the...
How Can a Forensic Accountant Assist with Surety Claims?
New construction is a key component of the economic growth, with commercial construction among the leading sources of new jobs and increased capital spending in practically every geographical market. With millions of dollars on the line for investors, construction companies,...
Clarifying Financial Remedies Under the Arthur Wishart Act
It is almost ten years since the Arthur Wishart (Franchise Disclosure) Act was introduced in Ontario. The Act seeks to protect often unsophisticated purchasers of franchise rights by requiring that certain disclosures be made to franchisees prior to entering into...
Backing out of a Franchise Just Got Easier
Section 6(6) of the Arthur Wishart Act gives franchisees the right to rescind their franchise agreements in the event that they do not receive a disclosure document. Ostensibly, the rescission remedy is designed to return the franchisee to the position...
Quantifying Business Loss Involving Expropriation of Newly Established Businesses
With increasing activity in public works projects in the Greater Toronto Area (e.g. the Toronto-York Spadina Subway extension) and other highway expansions across Ontario, we can expect a large number of businesses to be affected by expropriation. This article will...
Documentation and Litigation
Litigation can be a scary and intimidating process. Preparation is key and includes ensuring that the documentation you need to prove your case is ready at hand. Below are some common forms of litigation and the documentation that should be...
Forensic Accountants Make It Add Up
Corporate fraud, insider trading, 9/11, intellectual property infringement the list goes on as to instances where parties have committed acts resulting in financial losses. The legal challenge in proving financial wrongdoing is a minefield in itself, but what steps need...
Fight the Battle on Two Fronts – Liability and Damages
Plaintiff and Defense attorneys are guilty! Guilty of waiting until the last minute to address areas of damages. MDD is very often retained in litigation engagements when the measurement of damages takes a back seat to liability and causation. Although...
The Role of a Forensic Accountant as an Expert Consultant and an Expert Witness
For many years, attorneys on both sides of the courtroom have turned to forensic experts to support their position as well as to identify the potential strengths and weaknesses in the arguments of opposing counsel. Additionally, attorneys can use expert...
Business Valuations: When You Would Need One
Business valuations in one form or another have been around for decades. As a result of the Eighteenth Amendment to the United States Constitution, the Internal Revenue Service began issuing memorandums and directives relating to methods for determining values and...
Financial Remedies Under the Arthur Wishart Act
It is almost ten years since the Arthur Wishart (Franchise Disclosure) Act was introduced in Ontario. The Act seeks to protect often unsophisticated purchasers of franchise rights by requiring that certain disclosures be made to franchisees prior to entering into...
