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?