Insurance Cases
Lost Profits at an Optometrist Practice
Zurich Insurance Company asked Campos & Stratis to determine an optometrist's lost
profits resulting from the closure of his office due to water damage. Campos & Stratis
developed a model to determine the number of walk-in and returning patients the doctor
would have seen, but-for the damage. Net profits were calculated based on these lost
patients and consideration was given to other continuing and non-continuing expenses.
Lost Profits at a Heavy Equipment Repair Center
National Interstate Insurance Company asked Campos & Stratis to verify and calculate lost
profits at a heavy equipment repair center due to a power outage. Upon investigation,
Campos & Stratis determined that the repair center was able to mitigate their loss by
renting a generator and that, despite the inconvenience, the center's productivity was well
within the normal range of operations.
Trademark Infringement Liability
Farmers Insurance Company and the law firm Cooper, Kardaras & Kelleher (Pasadena) and
the Laser Eye Center of Los Angeles (defendant) retained Campos and Stratis to quantify
trademark infringement damages arising from the use of the trademark "Laser Eye Center"
in the Bay Area. Campos and Stratis assisted with discovery and provided a declaration and
Rule 26 expert report that included an analysis of allegedly infringing revenues,
apportionment and deductible costs. The case settled before trial.
<Lost Profits at a Country Club
The St. Paul Insurance Company asked Campos & Stratis to determine a country club's lost
profits due to the poisoning of all 18 greens on its golf course. The country club has
multiple profit centers, some of which rely on the number of golfers for revenue. Campos &
Stratis worked with the policyholder to determine which profit centers and revenue streams
depend on the number of golfers to ensure accurate damages.
Inventory Reconstruction Due to Theft
Intermountain Claims, Inc. asked Campos & Stratis to determine a home electronics
retailer/installer's loss due to the misappropriation of merchandise by an employee.
Because said employee was responsible for many aspects of selling merchandise, several
documents were compromised or not available for Campos & Stratis to analyze. Campos &
Stratis determined actual misappropriated goods by analyzing shipping documents provided
by a third-party. By analyzing these shipping documents, Campos & Stratis was able to use
product descriptions to determine the proper value for the misappropriated goods.
Copyright Infringement Liability
Travelers Insurance Company and the law firm of Sedgwick, Detert, Moran & Arnold, L.L.P.
(Los Angeles) and Import Resource Group, Inc. (plaintiff) retained Campos and Stratis to
quantify copyright infringement damages arising from copyrights owned by IRG and
allegedly infringed by Wal-Mart and Cresco Inc. Counter claims involved copyrights
asserted by Cresco against Target Stores, and Michaels, Inc. Campos and Stratis quantified
damages arising from copyright infringement, the impacts of demand letters and the seizure
of merchandise by U.S. Custom agents. Campos and Stratis assisted with discovery and
submitted a Rule 26 expert report that included analyses of the alleged infringing revenues
and deductible costs. Campos and Stratis also provided deposition testimony.
Lost Profits at an Engineering Firm
Maxson Young Insurance asked Campos & Stratis to determine lost profits for a
mechanical/electrical engineering firm due to a fire at the policyholder's office. Campos &
Stratis evaluated several factors of the engineering firms operations to determine that no
contracts were lost due to the fire. Campos & Stratis also developed a model to calculate
the policyholder's continuing payroll costs, considering the engineering firm continued to
pay its employees and several sub-contractors to complete time-sensitive work.
Design Patent Infringement Liability
Farmers Insurance Company and the law firm Ropers, Majeski, Kohn, & Bentley, P.C. (Los
Angeles) and Rid-Gid Products, Inc. (defendant) retained Campos and Stratis to quantify
damages arising from a design patent dispute that resulted in the alleged disruption of Flou
S.P.A.'s prospective economic relations. Rid-Gid sent a demand letter to Flou customers
that alleged Flou furniture infringed upon Rid-Gid's design patent. Campos and Stratis
quantified damages, submitted a declaration and a Rule 26 expert report that identified
economic factors that contributed to Flou's alleged business loss.
Lost Profits at a Hotel
Intermountain Claims, Inc. asked Campos & Stratis to determine lost profits for an upscale
hotel which suffered damage in several rooms from a faulty sprinkler system. A typical
analysis of historical performance would not be adequate, due to the hotel preparing to
accommodate guests for the 2002 Winter Olympic Games. Campos & Stratis analyzed
historic vacancy rates for the hotel and coupled that with actual reservations cancelled and
projected walk-in traffic. Campos & Stratis continued to consider the rooms available for
use for the analysis.
Lost Profits at a Sports Club
Intermountain Claims, Inc. asked Campos & Stratis to determine a sports club's lost profits
due to damage suffered by one of its tennis bubbles. Campos & Stratis meticulously
searched through the policyholder's tennis scheduling information and determined that
during much of the period of restoration, the sports club had ample space on its tennis
courts to meet demand.
Lost Profits at a Manufacturing Plant
The St. Paul Insurance Company asked Campos & Stratis to calculate lost profits at a
hydraulic seals manufacturer due to a power outage. With the policyholder having multiple
work-centers for its product range, Campos & Stratis reviewed several production reports
and considered several start-up time issues for each work center. Campos & Stratis also
analyzed the impact the power outage had on the policyholder's electronic inventory
carousel.
Trademark Infringement Liability
Hartford Insurance Company and CNA Insurance Company and the law firm Lane Powell
Spears Lubersky, L.L.P. (Seattle) and Direct Focus, Inc. (defendant), the manufacturer of
the BowFlex fitness machine, retained Campos and Stratis to quantify damages arising from
trademark, copyright and trade secret claims made by SoloFlex, Inc. against BowFlex.
Campos and Stratis submitted a Rule 26 report that addressed SoloFlex's product life cycle
and an apportionment of BowFlex sales based upon direct advertising television infomercials
and spots. Campos and Stratis also provided deposition testimony. The case settled before
trial.
Lost Profits at a Charter Bus Company
Gallagher Bassett Services, Inc. asked Campos & Stratis to calculate lost profits for a
charter bus company due to an accident involving one of its large coaches. Campos &
Stratis reviewed financial information, along with utilization reports for all of the
policyholder's coaches in the city in which the accident occurred, to determine that the
policyholder did not have a sufficient number of buses to meet demand. Campos & Stratis
calculated damages based on average coach earnings per chartered occasion.
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