Damages and compensation calculation

Overview

Bates White can provide independent and objective estimates of damages arising from breaches of contract, expropriations, regulatory takings, and various other specific government actions by applying our extensive knowledge of economic and accounting principles, advanced economic, statistical, and financial modeling techniques, and extensive industry experience. In addition, our team can estimate compensation due in an arbitration setting by using recognized valuation methods such as book value, replacement value, liquidation value, discounted cash flow (DCF), and other methods. The following provides some examples of past cases:

  • On behalf of an investor involved in an expropriation case predating the Economic Emergency Act in Argentina, our experts provided a report and testimony to the International Centre for Settlement of Investment Disputes (ICSID) on: estimated damages against a utility as well as the unjust enrichment on the part of the government; compensation due to the investors in the utility; and important economic principles to apply under a Bilateral Investment Treatment claim at ICSID.
  • A foreign-owned utility in Bolivia hired a law firm and one of our experts to assess its chances at the ICSID as a result of a series of actions by the regulator. Based on the results of this analysis, including the assessment of damages, the utility negotiated a tariff increase with the government that allowed the utility to improve its financial situation and receive compensation for past losses.
  • As part of the negotiations between an investor and a Central American government, our experts performed a damages assessment for a potential claim of expropriation of investments at the ICSID.