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Loss of earnings for a motorcyclist

We analysed historical financial performance and identified the personal contribution the Claimant had made to the business.

We were able to show the Claimant had in fact suffered a significant loss of earnings

The Claimant

Injuries were suffered by the Claimant in a motorcycle accident.  He was a partner in an unincorporated business which had recently relocated and which was expanding after a fall in turnover immediately following the relocation.

KTS Forensic analysed historical financial performance and identified the personal contribution the Claimant had made to the business.  The other partners and senior staff had worked much harder (seven days, etc) to cover the Claimant’s absence and as a result, profits did not fall significantly.

Our quantification of the claim was built on the increased level of activity plus the contribution the Claimant would have been able to make if he had not been injured.  Our projections showed significantly increased turnover and profit.

We were able to show that although there had been no significant fall in net profit after the accident, the Claimant had in fact suffered a significant loss of earnings.

The Defendant/Insurer

The insurers of a police authority received a large claim for loss of earnings from an individual who claimed wrongful arrest.  Although the quantum had been prepared by a forensic accountant from one of the big four accountancy firms, it contained a number of errors resulting in significant overstatement.

The claim was overstated by about 60%.  Some of the errors were immediately obvious; for example the Claimant’s forensic accountant had not deducted income tax and national insurance from projected gross earnings.  Other errors were more subtle, including ignoring the inevitable change in sales mix which meant that future sales would have been less profitable.

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