A yardstick report is one that looks at multiple solutions to a problem. By defining the criteria with which a solution is chosen, each possible solution is then explained and a recommendation is made. Basically, the yardstick is the way to measure several solutions to see which is best for a particular problem when there is more than one option.

The yardstick method, which bases economic damages on the performance of comparable “guideline” companies, is a tried-and-true approach for estimating damages, but, like other methods, it has its limits. For example, courts typically don’t favor it in cases involving a plaintiff that’s a start-up company.