Case Study: Duped on a Duplex
Claimants purchased a residential investment property based on inaccurate information provided by a real estate agent. The respondent agent represented the property as a duplex, permitted with an upper and lower unit that could each be rented separately. Claimants subsequently discovered the lower unit lies in a 100-year flood plain and will never be permitted as a separate unit.
Counsel for claimants engaged Morones Analytics to prepare an analysis of lost profits resulting from the claimant’s inability to rent the property with two rental units. Our analysis involved applying historical market rental rates, projecting lost revenues, evaluating industry studies to quantify avoidable costs, and then reducing future lost profits to present value.
Morones Analytics prepared and reviewed a damages analysis with counsel prior to mediation, and the parties successfully reached a settlement during mediation.
Have questions about this type of damage analysis? Reach out to Kevin Marold who conducted and prepared the analysis for this case.