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respect to their claims for damages for lost profits on account
of FIG's breaches of contract and fraudulent misrepresentations.
That evidence included the testimony of Donald Wharton (Mr.
Wharton), a certified public accountant whom the plaintiffs had
retained for the purpose of determining the profits lost by DCI
and by the Diamonds as a result of those actions of FIG.
At the damages hearing, Mr. Wharton testified that, in
determining lost profits, he took account of the profits lost by
DCI, as well as the profits lost by ETS, and that he treated ETS
as a division of DCI. In this connection, Mr. Wharton testified
that it was his understanding that ETS was owned by the Diamonds,
that it was formed sometime during 1982, and that it provided
services almost exclusively for DCI.
Mr. Wharton further testified at the damages hearing that he
and others working under his supervision had prepared several
analyses of the profits lost by DCI and by ETS as a result of
FIG's breaches of contract and fraudulent misrepresentations and
that, in determining those profits, he relied principally on one
of those analyses referred to as Analysis 1 (Analysis 1) that was
entitled "Additional Profits due to DCI - 1981-1985, Measure
number one - Using historical hourly rates for investigators'
services and historical markups on other revenues".6 Analysis 1
6 Although the title of Analysis 1 referred only to DCI, as
stated above, in reaching the conclusions shown in Analysis 1,
Mr. Wharton aggregated the operations of DCI and ETS.
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