Litigation Support is the process of providing consultation and support services to attorneys regarding current and pending cases. Below I have outlined six examples of how CPAs can bring value to attorneys when they are assisting their clients.
1.Lost Profits – If a company experiences a loss such as a fire or other damage, and is then out of business (or a portion of their business) for some time, interruption needs to be valued. Insurance companies can be very particular when determining a calculation of lost profits. An experienced CPA can prepare a fully supported calculation of lost profits that can be compared with the insurance companies’ calculation. The additional calculation of value in Litigation Support could make a case for a substantial increase in the insurance proceeds, which ultimately would benefit the attorney’s client.
2.Breach of Contract – If a former employee fails to comply with a company’s non-solicitation agreement and begins convincing clients to move their business to his/her new employer, damages must be calculated. Knowledgeable CPAs can calculate the damages associated with the breach and work with attorneys to successfully sue the former employee and their new employer to pay for the damages caused.
3.Wrongful Death – In the unfortunate case of accidents in the workplace that result in death, CPAs can help. They can represent insurance companies, perform calculations about the economic impact of the accident and ultimately help family members receive reparations during this difficult time.
4.Divorce Engagements / Family Law – When assisting attorneys with divorce cases, a CPA’s involvement can extend far beyond preparing a valuation of the family business. CPAs can work with clients to identify marital assets and allocate the assets and liabilities among the parties. With the help of Forensics Experts, CPAs can assist in finding hidden assets, as well. CPAs can also work with either spouse to invest their money appropriately and ensure that it doesn’t run out in the future.
5.Employee Theft – Fraud and embezzlement cases continue to increase every year. Experienced CPAs can navigate through the multitude of papers and reports to provide a detailed, credible analysis of the amount of loss. They can also provide internal control studies to help reduce the possibility of future employee theft.
6.Tax Effect – With each of the above instances, and whenever damages are considered or money changes hands, there are tax consequences for both sides. CPAs can work with attorneys in drafting a settlement with the best possible tax outcome for their clients.
The competency, experience and qualifications of the CPA are extremely important in Litigation Support engagements. Juries and judges have a high expectation of CPAs and an even higher expectation of specialists. Be sure to choose a CPA that is accustomed to Litigation Support and cross-examination.
When Yeo & Yeo’s Litigation Support Services Group is referred to an attorney’s client for a specific reason, we often find that, because of our unique qualifications and experience, we can provide assistance well beyond the standard calculations of damages. A CPA’s involvement throughout your case can include:
- Assisting in preparing interrogatories and request for production of documents
- Researching and analyzing financial issues
- Understanding the tax effects of various outcomes
- Assisting in preparation for depositions and trial
- Providing expert witness testimony
The value of a CPA in litigation support can be invaluable if their expertise is applied appropriately. The examples above help portray a small amount of the breadth and depth of what our Litigation Support Services Group can offer you in order to secure the best possible outcome for your clients. Make Yeo & Yeo your first call when you have a new litigation support case – we can help and guide you through all of the opportunities and resources we have available to help you and your client be successful.