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Blue Tab 102 — G21 Base Damages — Business Income Losses (Evidence-Only)

GUARDRAIL: BLUE — G21 BASE DAMAGES

G21 flood-related base damages only. No enterprise multipliers, no Freeman Street.

0) Purpose & Scope (Blue discipline)

This tab documents receipt-based business income losses arising from the G21 flood (Oct 13, 2019). It provides the historical baseline (IRS-filed Schedule C records) and the evidence schema for monthly loss windows. It is evidence-only: all calculations and interest are performed in Blue Tab 002 (9% simple per CPLR 5001-5004).

Strict Blue scope: G21 operations only. Combined-operations/opportunity-loss analysis lives in Red/Purple and is cross-referenced but not calculated here.

Consensus Position

Tier: 2 — Working Additions
Principal: $383,141.16
Status: Calculated (EOM anchor methodology)

Cross-reference: Feeds into Tab 002 Section 5.1.2. Interest calculation uses end-of-month anchors per Tab 002 Section 3.2. Total with interest: $488,830. The methodology (Before/After, Engagement-Specific, or Hybrid) is attorney-selected in Tab 002.

1) Executive Snapshot (to be populated in Phase 3)

Measure (pre-interest) Amount
Baseline period(s) selected by counsel TBD
Measured interruption window(s) (YYYY-MM → YYYY-MM) TBD
Documented lost income (sum of monthly deltas) TBD

Attorney method selection (record here, compute in Tab 002):

Model A (Before/After): pre-loss monthly average vs. post-loss actuals.

Model B (Engagement/Invoice-Specific): canceled/shifted engagements (contracts/POs) net of partial receipts.

Model C (Hybrid): Model B for known engagements + Model A for all other months.

1.1) Historical Baseline Reference (Tax-Verified; G21-only)

Source: IRS-filed Schedule C (Form 1040) — Multi-Media Production at 97 Green Street (G21), tax years 2017–2019.

(40 Frost Street excluded from Blue; separate operations.)

Annual Gross Receipts (G21):

  • 2017: $61,199
  • 2018: $60,735
  • 2019: $64,460 (10 months pre-flood; flood on 2019-10-13)

3-Year Average (2017–2019):

• Annual: $62,131 • Monthly (full precision): $5,177.5833

Trend: 2017→2018: −0.76% (flat) • 2018→2019: +6.13% (growth)

Capacity anchor: Blue Tab 101.1 (recording studio equipment / operational infrastructure) evidences the production capacity supporting this baseline.

Cross-reference (combined operations): For combined-operations Schedule C baselines (2017–2019), see Red Tab 203 (Part C — Technical Foundation) (via Binder Control).

2) Loss Model & Inputs — Evidence Schema (entered by counsel/paralegal)

Create a monthly table for each loss window; one row = one month.

Columns (minimum):

loss_month (YYYY-MM) | baseline_monthly (full precision) | actual_monthly | delta (baseline – actual) | support_doc_ids | notes

Support documents: monthly bank statements, invoices/POs, emails confirming cancellations, engagement calendars, tax workpapers. Use filename discipline YYYY-MM_vendor_or_client_amount.ext.

Attorney controls:

  • Baseline: default = $5,177.5833 (G21 3-yr monthly average).
  • Loss Windows: counsel defines the date ranges (see §3).
  • Offsets: enter mitigation income, insurance proceeds, or alternative revenue (attach proof).

3) Calculation Method & Rounding Policy (performed in Tab 002)

Delta per month: baseline_monthly – actual_monthly (floor at $0 if actual ≥ baseline).

Window total: sum of monthly deltas in that window.

Category total (pre-interest): sum of all window totals (and any Model B engagement-specific deltas).

Precision & rounding:

  • Do not round the monthly baseline; keep $5,177.5833 through aggregation.
  • Round only at the final category total (Tab 002 policy).
  • Interest: 9% simple (CPLR 5001–5004) using EOM anchors for each loss month (Tab 002 §3.2).

Illustration (attorney will supply values):

Example monthly row:
loss_month=2020-02 | baseline=5177.5833 | actual= 950.00 | delta=4227.5833 | docs=[Bank_2020-02.pdf, Canceled_PO_Feb.pdf]

4) Evidence Inventory & Filing

  • Tax returns (2017–2019): PDF copies of Form 1040 + Schedule C (G21); IRS e-file acceptances; preparer PTIN.
  • Bank statements (2019–2022): monthly PDFs; mark revenue deposits and any refunds/chargebacks.
  • Client records: contracts/POs, email cancellations/postponements, calendar screenshots.
  • Operational ties: Blue 101.1 (capacity), 101.5/101.2 where equipment/fixtures relate to revenue generation (no double counting).
  • Filename discipline: YYYY-MM_client_or_bank_amount.pdf.
  • Chain-of-custody: retain native PDFs; hash on request.

What this proves: For an established business, lost profits are recoverable when a reliable historical baseline and reasonable certainty are shown, and losses were foreseeable consequential damages of the wrongful condition (here, the G21 flood rendering the premises unusable).

Primary Authority (NY):

  • CPLR 5001–5004 — prejudgment 9% simple interest and post-judgment interest framework.
  • Real Property Law §235-b (warranty of habitability) — habitability breaches can support damages flowing from uninhabitable conditions (context for displacement affecting operations).

Key Cases (illustrative):

  • Ashland Management Inc. v. Janien, 82 N.Y.2d 395 (1993) — Lost profits recoverable with reasonable certainty; methodology may rely on established formulas and historical data when reliable.
  • Kenford Co. v. County of Erie, 67 N.Y.2d 257 (1986) — Lost profits must be foreseeable and within the contemplation of the parties; proof must be non-speculative.
  • Bi-Economy Market, Inc. v. Harleysville Ins. Co., 10 N.Y.3d 187 (2008) — Consequential lost profits allowed where foreseeable under the agreement/relationship; underscores recoverability of business interruption where proven with certainty.
  • Tractebel Energy Marketing, Inc. v. AEP Power Marketing, Inc., 487 F.3d 89 (2d Cir. 2007) — Courts accept methodology-based lost-profit proofs using historical performance and reasonable assumptions.

Doctrinal application to this tab:

  • Calculation methodology: 3-year tax-verified monthly average (G21) supplies a non-speculative baseline.
  • Evidence requirements: monthly proof of actual receipts; contemporaneous cancellations/POs; bank corroboration.
  • Mitigation: document efforts to resume/replace engagements; enter mitigation offsets in Tab 002.

Notes: Citations are provided for counsel's convenience; confirm jurisdictional fit and any lease-specific limitations or remedies before filing.

6) Blue-Compliant Evidence Timeline (Mermaid Gantt)

gantt
    title Business Income — G21 Evidence Timeline (Blue-Compliant)
    dateFormat  YYYY-MM-DD

    section Pre-Flood Operations
    Normal Operations (G21)                   :op1, 2017-01-01, 1017d
    Tax Baseline Documentation                :tax, 2017-01-01, 1095d

    section Event & Immediate Impact
    G21 Flood (Oct 13, 2019)                  :flood, 2019-10-13, 1d
    Residence/Studio Uninhabitable            :impact, 2019-10-14, 120d

    section Documentation & Evidence
    Bank/Invoices Evidence Collection         :docs, 2019-11-01, 240d
    Client Communications Archive             :client, 2019-11-01, 180d

    section Loss Windows (Attorney to Confirm)
    Loss Window 1 (Displacement)              :loss1, 2019-11-01, 240d
    Loss Window 2 (Partial Operations)        :loss2, 2021-07-01, 365d
    Loss Window 3 (Continuing Impairments)    :loss3, 2022-07-01, 365d

Purpose: Visualizes G21-only operational impact and evidence collection. No Red/Freeman content is depicted here.

7) Quality Control (QC) Checklist (pre-Tab-002 entry)

  • [ ] Scope check (Blue-only): rows include G21 revenue only.
  • [ ] Baseline precision: monthly baseline recorded as 5,177.5833 (no pre-rounding).
  • [ ] Completeness: no missing months within a claimed loss window.
  • [ ] Evidence linkage: each row cites bank/invoice artifacts; filenames match deposits/engagements.
  • [ ] Offsets recorded: mitigation income / insurance proceeds (with documentation).
  • [ ] No double counting: engagement-specific losses (Model B) not duplicated in Before/After delta.
  • [ ] Route to Tab 002: totals entered once; interest anchors = EOM per Tab 002 §3.2.

8) ROUTING — All Calculations in Tab 002

All math is performed in: Blue Tab 002 — G21 Base Damages — Mathematical Verification (REPL Appendix)

  • Baseline: $5,177.5833 monthly (G21 3-yr average).
  • Interest: 9% simple per CPLR 5001–5004 (EOM anchors by month).
  • Rounding: final category total only (no early rounding).
  • Framework: Blue Tab 001 — G21 Base Damages — Framework & Evidence Standards
  • Math & Interest: Blue Tab 002 — REPL Appendix
  • Property Damage Parent: Blue Tab 101 — Property Damage & Restoration (Evidence-Only)
  • Capacity Evidence: Blue Tab 101.1 — Recording Studio Equipment / Instruments / CE
  • Combined-Ops Baseline (Red): Red Tab 203 — Part C: Technical Foundation (Binder Control cross-reference)

END — Blue Tab 102 — G21 Base Damages — Business Income Losses (Evidence-Only) v2.5