Quantifying Damages

In tort action, there are 4 broad categories of damages – compensatory, nominal, aggravated and exemplary or punitive (Australian Law Reform Commission, 2017). In my opinion, aggravated damages maybe one of the most complex category to work on as it may be too remote and difficult to put a value for the claim for damaged feelings or emotional distressed. This may also be the reason why the law has always been reluctant to compensate for mental distress (Havilah, 2014). 

Quantification of losses should be based on factual evidences, documents and witness statements, as well as expert reports. Another complexity in assessing damages was displayed in the case of Ramsay v BigTinCan Pty Ltd [2014], where the courts struggled to quantify the damages as the process is difficult, impressionistic and highly subjective. All 4 judges in the case had made used of different methods and percentage of estimates to determine the sum to be awarded (Angyal, 2014). 

Specialised knowledge is crucial to understand the most effective method to use in evaluating the claims. Since in this process, forensic accountants (FA) have to exercise a lot of their own judgements and will be appear in the court to elaborate on the process, having specialised knowledge will ensure that the FA’s credibility and professionalism are not undermined during the legal process. 

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References

Angyal, R. (7 October, 2014). Quantifying damages for economic loss: Is this the hardest thing commercial lawyers do? Retrieved from Legalwise Seminars: http://www.legalwiseseminars.com.au/articles/posts/2014/quantifying-damages-for-economic-loss-is-this-the-hardest-thing-commercial-lawyers-do/

Australian Law Reform Commission. (2017). 12. Remedies and Costs. Retrieved from Australian Law Reform Commission: https://www.alrc.gov.au/publications/12-remedies-and-costs/damages

Brennan, N., & Hennessy, J. (10, 2001). Forensic accounting and the calculation of commercial. Retrieved from Research Repository UCD: http://researchrepository.ucd.ie/bitstream/handle/10197/5384/08_18_Brennan_Hennessy_Forensic_Accounting_and_the_Calculation_of_Commercial_Damages_Bar_Review.pdf?sequence=1

Havilah, B. (23 October, 2014). Compensation for reputation loss and hurt feelings – Maybe Not? Retrieved from Havila Legal: http://www.havilahlegal.com.au/compensation-for-reputation-loss-and-hurt-feelings.html