. . . X L 1 . . . | . . . . A 2. Anita had a ten-year contract with city of West Haven to operate the city's visitor and convention bureau. For a variety of reasons, Anita and the city manager had several major differences of opinion. With seven years still remaining on the contract, the city unilaterally cancelled the contract and ceased paying Anita her salary and other benefits. Anita sued the city, and the court found the city liable for breach of contract. At the time the contract was terminated (at the beginning of the fourth year of the contract), Anita was $5 years old, and when the court liability ruling was issued Anita was 57. The present value of the lost salary and benefits for the last seven years of the contract are respectively: $110,000, $112,000, $113,000, $115,000, $116,000, $117,000, and $135,000. Below is a table from the National Vital Statistic Report identifying the number of people alive out of 100,000 people for females in the United States for ages 50 - 67: Age Number Alive 50 95,733 51 95,445 52 95,139 53 94,813 54 94.462 55 94,085 56 93,676 57 8928% 93,213 92,754 92,235 91,672 91,058 90.385 89,674 64 88,842 65 87,974 66 87,043 67 86.045 (a) Adjusting for the probability of life, Anita's total damages would be: (b) Assume all other issues in the case remain the same except that Anita was 60 years old at Type here to search O 9 A W A ( x 8 1:39 PM 10/26/2020. . . X L 1 . . . | . . . . . Y . . 7 . (b) Assume all other issues in the case remain the same except that Anita was 60 years old at the time of the breach of contract, and she is 61 at the time the court rules in her favor. Given this information, the amount of damages would be: 3. Josh worked for the Johnson Boat Works company as a maintenance welder for 15 years. At the beginning of each five years of employment, Josh signed a five-year work agreement with the company. Twelve months ago shortly after Josh had signed a new five-year agreement, Josh was fired by the new owner of the company. At the time of his firing, Josh was making $25 an hour and his employer paid benefit package, which included health care and other government mandated items, was worth about 20% of his wages. Although Josh started looking for a new similar job right away, it was eight months before he got a new job. The new job pays $22 per hour, but it is a contract that pays no benefits other than his wages. On advice from his family he recently filed a wrongful discharge case against Johnson Boat Works. Type here to search O A W 1:39 PM 10/26/2020. . . X 1 . . . | :. . A (a) Assume that the court finds that Josh was fired "for cause" and that the Johnson Boat Works has no liability for wrongful discharge. In this scenario the best estimate of damages for Josh for the first twelve months after his firing is (b) Assume that the Johnson Boat Works is found liable for the firing of Josh. Also assume a 40 hour week and a 52 week work year. Josh worked for 13 weeks during the first twelve months at his new job. What is the amount of damages suffered by Josh during the first year after he was fired? (c) Assume that the Johnson Boat Works is found liable for the firing of Josh. Also assume a 40 hour week and a 52 week work year. Josh worked for 13 weeks during the first twelve months at his new job. Assume that he continued to work at his new job for all of years two and three of the five year work agreement and that the last two years of the contract Josh lost his contract job and had to work a minimum wage job at $15,000 a year with employer paid benefits that amounted to 10% of his wages. What is the amount of damages suffered by Josh during the entire five-year contract? (d) Assume that the Johnson Boat Works is found liable for the firing of Josh. Also assume a 40 hour week and a 52 week work year. Josh worked for 13 weeks during the first twelve months after he was fired and he worked at that job for all of the second year after he was fired. At the beginning of the third year he found a new welding job that paid $30 per hour with the same fringe benefit package as he had at the Johnson Boat Works company. What is the amount of damages suffered by Josh during the entire five-year contract? Type here to search O W A ( x 8 1:39 PM 10/26/2020. . . X L 1 . . . | . . . . . A . 7 . 1. Judy is a successful physical therapist in Atlanta. As part of her business practice she purchased a comprehensive injury and disability insurance policy that she has carried for the last ten years. During the first fifteen years of her practice Judy has experienced the following earnings from her physical therapy practice. Year Earnings Year Earnings $66,000 9 $124,000 74,000 10 135,000 79,000 11 145,000 87,000 12 156,000 95.000 13 120,000 101,000 14 117,000 107,000 15 121,000 114,000 At the beginning of her 13th year of practice, Judy had an accident at the office in which she fell and hurt her back. Ever since the accident, Judy has experienced serious back pain and some dizziness that she had not experienced before the accident. As the result of these symptoms, Judy in unable to work the long hours that she normally had worked and as a result has been unable to grow or even maintain her physical therapy practice as she did before the accident. Her intentions before the accident were to grow the business about 10 percent a year for the foreseeable future. Judy claimed that she planned to operate her physical therapy business until she was 65 years old. Judy has filed a claim with the insurance company and the company is contesting her claim. Judy hired an attorney to sue the insurance company in an attempt to get the insurance company to honor her claim. You have been hired to help in this litigation. Judy was 49 years old at the time of the accident, and she just turned 52 last week. (a) The approximate percentage annual growth rate in Judy's earnings until her accident was (rounded to the nearest whole percentage): (b) Assume the average annual earnings growth rate for Judy through year 12 was six percent. What is Judy's estimated damage for year 13 only? Type here to search O A W 1:38 PM 10/26/2020