Background

FRP was instructed by solicitors acting for a company defending a claim brought by a competitor. Both parties in the dispute were involved in the money transfer industry and used a network of retail businesses as agents.

The claimant asserted that the defendant had solicited its agents, knowingly and willingly in breach of the claimant’s contract with the agents. The claimant said it had suffered lost profits as a result of the defendant’s actions. It also asserted that the defendant was unjustly enriched by its procurement of the breaches of contract.

Action

Our team was instructed by the defendant’s solicitors to review the level of losses estimated by the claimant in advance of a mediation meeting.

We forensically analysed the calculations prepared by the claimant, challenging the assumptions and methodology and considering potential areas of double counting. In particular, we assessed the reasonableness of the claimant’s underlying assumptions regarding the performance of the agents, the projected increases in profitability, and the alleged loss of opportunity in relation to customers utilising other, more profitable services offered by the retailer agents.

We prepared a memorandum calculating the alleged loss of the claimant’s earnings, and the alleged profit earned by the defendant. This was disclosed to the claimant and used in the mediation and subsequent settlement discussions.

Outcome

We attended the mediation and assisted our client in its discussions regarding the losses suffered. Following mediation, the parties settled the dispute.