Damages in International Arbitration under Complex Long-term Contracts (Oxford International Arbitration Series) Book

The first detailed coverage of legal, financial, and economic implications of damages in international arbitration Clarifies how different rules of law on damages and loss of income (UK, US, France, Mexico, Germany, CISG and UNIDROIT Principles) are applied to damages claims for breach of complex long-term contracts including privately-financed infrastructure projects and public-private partnerships. Uses a step-by-step approach for the application of the but-for method and its relationship to loss, causation and the measure of damages Refers to best international and national practices for the reconstruction of the hypothetical course of events to solve the legal, financial and economic issues involved in the determination and quantification of damages claims and the proper reasoning of arbitral awards Makes extended reference to high profile ICC, UNCITRAL and ICSID cases and unpublished awards in which the authors were invovledDamages are a topic of central importance in international arbitration, being very often the principal concern of the parties, and an indication of the performance of their counsel. They are also one of the most complex topics. This book addresses the many competing factors that contribute to their nature and amount: while they are compensatory, they may be subject to counterclaims and set-offs, affected by failures to mitigate, or inflated by considerations such as interest and costs. Specialist evidence is relied on to complete composite calculations, taking into account such evasive factors as the destruction of market value, uncertainty of future revenues, projected interest rate changes, and lost dividends. The lack of understanding of the underlying considerations, methods such as "splitting the baby", or dogmas such as the misinterpreted "efficient breach of contract", combined with the already high level of burden of proof, can make successful damages claims or properly reasoned awards difficult to achieve.Read More