Analyzing Pricing Mechanisms and Economic Losses Under a Long-Term Chemical Supply Agreement

Director Niko Czaplicki and Senior Managing Director Tomas Haug provided expert economic analysis and testimony in an ICC arbitration in the chemicals industry. NERA analyzed losses under a long-term supply agreement for specialty chemical products, assessed the impact of the European energy crisis and other market disruptions on the contractual pricing mechanism, quantified historical and future losses, and reviewed the opposing expert’s economic analyses and damages assessment. NERA also assessed the opposing party’s counterclaim and evaluated the economic basis of the damages claimed. Our work included reviewing the underlying assumptions, analyzing causation and mitigation, and assessing whether the alleged losses were supported by the available evidence.