Lit.Econ LLP

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Insurance Services

Contact: Dr. Robert Trout (robert.trout@litecon.com) or,
..............David S. Hanson (dhanson@litecon.com)

Lit.Econ LLP consultants have applied their knowledge of accounting, finance, statistics and econometrics to a wide variety of business interruption situations. Our work for insurance companies has primarily been in the area of measuring business interruption losses arising from natural disasters, such as floods, fires and earthquakes. However, we have also directly represented insurance carriers in various business litigation matters involving insurance coverage, such as antitrust issues and may type of business interruption situations. Our consultants have published books and journal articles concerning the application of economic and statistical theory to the measurement of damages in business interruption cases.

Re: UPI (Pittsburgh, CA 2002) Analyzed likely loss of steel sales and steel prices for a steel mill that had a fire in its production facility. Represented the company’s insurance carrier, Industrial Risk Insurers.

Panico v. Truck Insurance Exchange (Orange Cty 2002) Critiqued the damage claims of an electronics distributor in a bad faith litigation matter. Represented Truck Insurance Exchange.

Uptown Property Mangement v. Hartford Casualty (San Diego Cty 2002) Critiqued the damage claim of the plaintiff and evaluated the business interruption calculations of the defendant’s accountants in a bad faith litigation matter.

Re: Farmers Insurance Exchange (Los Angeles 2000) Prepared rebuttal analysis to a $14 million claim filed by a general contractor for restoration of a condominium complex damaged in the Northridge earthquake. Our analysis included the preparation of a database to summarize the costs by trade and by phase, as well as an audit of the actual expenditures of the general contractor. The matter was settled for about 60 percent of the original claim.

Rated R. Clothing v. California Fair Plan (Los Angeles Cty 1997) Analyzed alleged losses to a business damaged by a flood. Determined value of business prior to the alleged accidental flood, and the economic losses from the incident. Represented the company’s insurance carrier.

Burlington Northern v. Underwriters (Fed. Dist. Ct., Ft. Worth 1991) Prepared an analysis of the value to Burlington Northern Railroad from its participation in an illegal boycott. We represented a group of insurance companies that were challenging a claim by the Burlington Northern for coverage under its own corporate liability insurance policies.

National University v. Square D (San Diego Cty 1990) Testified about the business interruption losses resulting from a fire and damage to a communications line to certain of the National University campuses. Represented the insurance carriers for National University in this matter.

Union Pacific v. Underwriters (Fed Dist Ct, Los Angeles 1989) Prepared an analysis on the value of settlement contracts from prior ETSI-Railroad litigation; also investigated antitrust issues included in the prior antitrust litigation. We represented a group of insurance companies that were challenging a claim by the Union PacificRailroad for coverage under its own corporate liability insurance policies.