Indosuez International Finance B.V. v. National Reserve Bank
Economic Advice in Litigation
The Situation
In 1997 and 1998 Indosuez entered into a number of (optional) non-deliverable foreign currency forward contracts. The Bank breached the contracts, which were meant to hedge Indosuez’s investments in Russian treasury securities against depreciation or devaluation of the Russian Ruble, causing Indosuez to suffer significant damages.
NERA's Role
A NERA economist testified as to the nature and mechanics of the above contracts, as well as to the appropriate methodology for the damages calculation given the lack of liquidity and extreme market conditions during the second half of 1998.
The Result
The Special Referee determined that, through the expert's testimony, plaintiff was able to establish its entitlement to recover the amount prayed for in the complaint (over $110 million plus accrued interest) and granted judgment in this amount to Indosuez.
