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In our latest publication, William Psaros, a Manager in our Sydney office, discusses the calculation of damages in a case which shows that it’s possible to establish causation when a statistical correlation is supported by common sense.
OneFlare is an Australian website which connects tradespeople, cleaners, and other service providers with potential customers. In 2012, in a bid to boost their site's prominence on Google search results, the founders hired an SEO consultant (Search Engine Optimisation).
At first, the strategy worked, and as more customers found the website through Google searches, OneFlare's popularity grew. In 2013, however, Google deemed the SEO techniques unfair and in breach of their guidelines, and removed the site from the top page of Google search results. Web traffic dropped to near zero, and revenue fell dramatically.
OneFlare’s founders sued their SEO consultant for damages for loss of revenue in the Supreme Court of New South Wales. They alleged that the consultant had breached his implied contractual and common law duties to:
OneFlare called an accounting expert on the question of damages.
To quantify damages, the expert compared OneFlare’s actual revenue with what it would have been, had they not used their ‘black-hat’ SEO strategy (and Google had not removed it from search results).
One of the expert’s key assumptions was that there was a direct, linear, and causal relationship between OneFlare’s website traffic and the revenue generated. In other words, if traffic had continued to grow, revenue would have grown along with it.
To justify this, he drew a chart of OneFlare’s actual traffic along with its revenue over time, which showed a correlation between the two lines:
Founding partner of our real estate group KordaMentha Real Estate, Berrick Wilson, has this week been included as No.28 in a list of 50 most influential people in Australian cycling.
KordaMentha partners, Grant Graham and Neale Jackson, have been appointed Voluntary Administrators by the Board of menswear clothing retailer, Meccano 2016 Limited, trading as Meccano.
Earlier this year, the Australian government introduced the Fair Work Amendment (Protecting Vulnerable Workers) Bill, which sets out to increase the penalties for serious contraventions and broaden the scope of compliance respon...
We are pleased to advise that our Forensic practice has been recognised as the leading digital forensic group in Asia-Pacific in Who’s Who Legal 2018 Investigations edition.