The Claimant, a manufacturer of engine components for the aeronautics industry, invested in the development of a production line in North America for a new aircraft program at the request of a client (the Respondent). Following numerous delays and issues with the qualification process, the production line never received the required certification to begin production. The Claimant initiated an ICC arbitration to seek compensation for its losses.
Secretariat professionals were engaged by the Claimant to provide expert testimony on the losses incurred. Our assignment included identifying the boundaries of the claim and quantifying the losses incurred. The losses consisted mainly of sunk costs including the value of time spent by employees and management in the project and pre-award interest.
Our expert testimony allowed the Claimant to obtain a favorable award in compensation for its losses with only minor adjustments to our calculation. The award also stipulated that 100% of the tribunal expenses and 70% of the legal and expert fees paid by the Claimant should be supported by the Respondent.
Jennifer Vanderhart, Steven Schwartz, Richard Brady, and Aminta Raffalovich authored a chapter in The Guide to Damages in International Arbitration – Sixth Edition. The guide is designed to assist the global arbitration community in understanding damages issues. The chapter is titled “The Use of Econometric and Statistical Analysis in Damages.”
Managing Directors Stuart Dekker, Joe Skilton, and Eddie Tobis authored the chapter “Compensation for Expropriation” in the 9th Edition of The Investment Treaty Arbitration Review.
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