Express Deliveries, Plaintiff
Acme Aviation, Defendant
Commercial Damages Case
Project #1 - ACC 541 - Forensic Accounting Issues
You are to take the facts as given in the attached case and prepare and fully support a reasonable and proper damages claim.
Use your best judgment and the principles covered in the text and in class to present a claim that you would be willing to support and defend in court as an expert witness. Shoddy or incomplete work would result in your being fired and probably sued - so prepare a professional, quality report.
Do not worry about legal issues in determining liability - assume for purposes of the report that liability has been proven and damages are owed, the only question is how much and for what. You may also assume that the three-year contract was legally binding and that AA is liable for the breach.
Organize your report into three sections - list every damage item that could be considered per the case, including those you decide amount to zero. Be complete in addressing separately any item that could be brought up in this case. Do not combine different things - do each separately.
Part 1 - Summary of financial damages. Use the following format:
|
Damage |
|
Default |
|
|
|
Bankrupt |
|
|
Item # |
Description of Damages |
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Total |
|
|
|
|
|
|
|
|
|
|
1 |
Increased cost of deliveries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 - ? |
additional damages items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
|
|
Part 2 - Description and justification of each damage item
For each item of damages list above, including the items that you feel should be zero, explain:
a. A brief description of the item.
b. Whether you feel there are full damages, partial damages, or no damages.
c. Justification for your decision in part b. Support with facts!
d. Full description of how you calculated the damages.
e. Justification for part d. including the approach taken and the years in which damages are claimed.
Part 3 - Additional damages
Explain any additional damage items (each separately) that you believe the plaintiff may be entitled to, but for which you do not have any information in the case. For each, prepare the same a-e items as above, plus f. - what information you would need to compute the damage amount.
Do NOT use this section to avoid addressing items that belong in Part 2.
Note for parts 2 and 3: If you decide and justify that no damages are owed for an item in parts a-c, you would not do parts d-e/f.
- 10/30/2005 - updated 11/01/2005 -