The Little Known Way to Secure Courtroom Victory

Troy Valuations offers an unmatchable blend of expertise, accuracy, and credibility that makes us the perfect ally for your litigation cases. We specialize in providing independent and objective business valuation reports for litigation and quantification of damages negotiations. But we go beyond simple number crunching; we build deep understanding and provide comprehensive insights that aid your pre-trial and courtroom strategies. We are dedicated to offering you an ironclad foundation of facts and figures that can withstand the toughest scrutiny. With Troy Valuations by your side, you don't just stand on firmer ground—you command the courtroom.

Tearing up sub-lease contract
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An independent, objective valuation can revolutionize your courtroom approach and maximize your success rate.

The Benefits of Outsourcing Valuation

Explore why outsourcing valuation to a professional like Troy Valuations can bring added credibility and free up valuable time.

Learn from Real-World Litigation Cases

Our work includes insightful analysis of actual cases where an unbiased, professional valuation made a decisive difference. 

Case Study – Quantifying Damages from Breach of Sublease Agreement

1. **Objective**
We were hired by the defendant in a civil action for a breach of contract. The Defendants received an expert report which a very high price tag. Our clients didn’t believe the expert report and wanted a second opinion.

2. **Client Background**
Our client was the lawyer acting for the defendants, (the“Company”) and the sole owner and director of the Company, (collectively, the “Defendants”).The Company leased a premises from a First Nation in a small town in Alberta. The Company subleased the premises to the Defendant’s brother-in-law (the “Plaintiff”). The Plaintiff operated a convenience store (“Store”) in the premises. The Plaintiff alleged a breach of the sublease contract resulting from events which occurred in October 2015, and obtained an expert report (“Original Report”) which valued the damages from the alleged breach at $1,222,866.

3. **Problem/Challenge**
The Defendants received the Original Report in 2020 and refused to pay this amount. They understood that this was too much money. Troy Valuations was contracted in 2020 to determine the value of the damages that may have resulted from the alleged breach.We were additionally contracted to provide a critique of the Original Report.

4. **Solution**
The Original Report referred to three heads of damages, as follows and as described below in Table 1:
  1. Loss of Earnings of $1,114,458 for the remaining portion of the sublease period;
  2.  Loss of Value of Inventory of $35,854 arising from the lost access to the inventory on had at the time of the alleged breach; and
  3. Total Other Losses of $72,554 arising from the additional expenses incurred by the Plaintiff.

Table 1 - Original Report Damages
We reviewed the Original Report and performed our own analysis.
We wrote a critique to the Original Report (“Troy Rebuttal Report”) with our comments as to the approach and techniques used in the Original Report; the strengths and weaknesses of differing positions on subjective matters, the calculations contained in the Original Report and whether the opinion an analysis in the Original Report were suitable for the purpose at hand.

We were supportive of the income approach and cash flow technique used to quantify the damages but disagreed with the calculation of the annual cash flow for the remaining portion of the sublease period. As noted by the judge, the Plaintiff found it difficult to keep the business afloat, within eleven months, he was losing money each month.

We found that the Loss of Earnings was $0, the loss of Value of Inventory was $25,000 and the Total Other Losses was $30,000 for total losses from the alleged breach of $55,000, as noted below in Table 2.
Table 2
Two months after filing our Troy Rebuttal Report, the author of the Original Report filed a Sur-Rebuttal Report. The Sur-Rebuttal Report revised downward the Loss from Earnings by $827,349 to $287,109, the Loss of the Value of Inventory was revised upward to $42,753 and the Total Other Losses revised upward to $103,379. The Total Losses of the Sur-Rebuttal Report were revised downward by $681,216 to $433,242 as noted below in Table 3.
Table 3
Troy responded to the Sur-Rebuttal Report with a Revised Response to the Sur-Rebuttal Report with a quantification of a range of $49,324 - $57,685 of damages from all heads, as noted below in Table 4.

Table 4
5. **Results**
In the Reasons for Judgement, the judge found that the Plaintiff had proven the breach of this sublease agreement and found that the Defendants were jointly and severally liable to the Plaintiff for damages of $50,958 plus the value of lost earnings as calculated by Troy Valuations.