Measuring Economic Damages with Maximum Certainty

14 June 2019
Julie M. Carey, Dr. Christian Dippon, Dr. William S. Taylor

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 a Global Arbitration Review (GAR) article titled “Measuring Economic Damages with Maximum Certainty,” NERA Managing Director Dr. Christian Dippon, Director Julie M. Carey, and Associate Director Dr. William S. 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 June 2019. The entire publication is available here