Breach of Contract Dispute: Economic Damages

Brief

The client, a medical equipment company that manufactures ventilators, and its reseller had a dispute regarding the design and manufacturing of ventilators during the COVID-19 pandemic. The parties disputed the ventilators’ unit price under the contract terms and the units purchased by the reseller. To resolve the dispute, the client filed for arbitration.

What we did

HKA personnel analyzed the ventilators’ unit price under the various contract terms, including comparing the unit price to the client’s manufacturing cost and to market prices for competing ventilators. Based on a range of unit prices, HKA personnel measured the client’s economic damages for the reseller’s unfulfilled purchase orders. In addition, HKA personnel performed an analysis to demonstrate that the reseller received an economic windfall prior to the dispute.

HKA personnel issued an expert report, provided deposition testimony, and testified at the arbitration hearing.

Outcomes

The client received a favorable arbitration ruling.