International arbitration is the preferred means of resolving cross-border disputes. However, although it’s a mature and effective dispute resolution mechanism, the assessment of damages in both commercial and investment arbitrations remains somewhat unpredictable and continues to provoke controversy.

We have undertaken a research project into the assessment of damages in International Arbitration cases, analysing 95 publically available awards to examine, amongst other things, the following issues:

 

• How far apart are the claim values quantified by claimant and respondent experts, and why?

 

• What percentage of amounts claimed by claimants is actually awarded by Tribunals?

 

• What are the common battle grounds between experts in assessing damages?

 

• How transparent are tribunals in explaining the basis for the value of damages awarded?

 

• Which methodologies are applied most frequently in assessing damages? What are the common reasons given by Tribunals for accepting or rejecting different methodologies?

 

• What interest is added to the amount claimed and how is that justified by Tribunals?