Originally from World Arbitration and Mediation Review

In our 2011 article, we defined an “invalid round-trip” (“IRT”) as a circumstance in which damages are first discounted using a risk-adjusted discount rate from the time of their occurrence to a prior period in time (i.e., trip one) and are then subsequently compounded forward to the date of award at a lower rate (i.e., trip two), resulting in an unwarranted reduction in compensation.  Whereas we demonstrate that IRTs fail to restore damaged parties to the position that they would most likely have been absent the breach, Aaron Dolgoff and Tiago Duarte-Silva argue in a recent article that there is nothing “invalid” about the round trip.