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Over the past few decades, a growing interdependence among world economies has emerged, bringing with it an ever-increasing amount of cross-border trade of commodities and services, the flow of international capital, and the rapid spread of technological innovation. The impact of economic globalization has led to a substantial rise in international arbitrations as counterparties have selected neutral and independent international arbitration seats to adjudicate their largest investment and commercial disputes. The high stakes and substantial complexity of the industries involved in the ensuing disputes make the accuracy and reliability of the quantification of economic damages more important than ever.

In the most recent edition of Global Arbitration Review (GAR), in an article titled “Measuring Economic Damages with Maximum Certainty,” NERA Managing Directors Dr. Christian Dippon and Julie M. Carey and Associate Director Dr. Will Taylor provide the general framework for measuring economic damages and discuss the reasonable certainty standard. The authors also provide stylized examples of investment and commercial disputes where actual economic and industry expertise is critical to constructing economic parameters in the but-for and actual worlds.

This article is an extract from GAR’s Commercial Arbitration Know-How, first published in April 2019 and updated April 2020 and June 2021. 

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