Damage Actions

Damage Actions. When a business determines it has been damaged by an illegal action, the value of the damages must be determined. There are three types of claims: those in which the business suffered losses but continues to operate; those in which the losses of income caused the business to cease; and those where the losses caused the business to never exist. Damage actions are unique in business valuation in that they often can incorporate subsequent information to determine the proper amount of damages. Often in damage actions there is a greater risk for juries and courts to be swayed by sentiment toward the parties involved.