Evaluating economic damage allegations related to damaged credit

Allegations of economic loss arising from damaged credit history appear in cases involving business damages as well as personal injury torts.

In these cases, the loss allegations generally revolve around a specific economic damage such as a mortgage loan denial or a higher interest rate.

The economic damage calculation and/or rebuttal analysis general involves comparing the plaintiff’s current economic and credit situation to the economic and credit situation that could have been reasonably expected to occur had the incident in question not occurred.

The credit situation that could have been reasonably expected to occur had the incident in question not occurred is typically referred to as the ‘but-for’ scenario.