Opinion ID: 2427974
Heading Depth: 1
Heading Rank: 4

Heading: presidio's evidence

Text: Based on his expertise and personal knowledge, Burnette testified about how he calculated Presidio's lost profits caused by Formosa's fraud. Specifically, Burnette testified that had Formosa truthfully represented the project's details, Presidio would have bid about $1.3 million. Burnette calculated the $1.3 million bid by comparing his original estimated cost to Presidio's actual cost to obtain a ratio, and then multiplying by the original bid. After deducting what Formosa paid Presidio, this results in a figure of $700,000, which includes lost profits. The percentage of lost profits in the $1.3 million bid is identical to the percentage of estimated profit in the original bid that Formosa fraudulently induced. In other words, Burnette's calculation multiplied Presidio's actual bid, which included a specific profit margin, by a ratio comparing what it took to complete the job because of Formosa's fraudulent scheme to what Presidio relied upon under the contract.