David Ashton

David Ashton

David Ashton

Senior Managing Director

Tel: +44 20 7632 5020
Fax: +44 20 3727 1007
Email: David.ashton@fticonsulting.com

Mr Ashton is Senior Managing Director at FTI Consulting. He graduated in Economics with Accounting and Finance from the London School of Economics in 1970, joining Arthur Andersen in the same year and qualified as a Chartered Accountant in 1973. Mr Ashton became a Partner in 1982. He retired from Arthur Andersen in June 2002, joining LECG in September 2002 as a Director.

Experience

Over the last 40 years, Mr Ashton's responsibility has included both audit and financial consulting for a range of clients and industries including the construction, shipping, oil and gas and chemical industries. Over the last twenty five years he has specialised in claims consulting, and developed Arthur Andersen’s UK Litigation Services Practice, encompassing Loss of Profit claims, Post-Acquisition Disputes, Fraud Investigations, Construction Claims, Intellectual Property Disputes, Professional Negligence Claims, Insurance Claims and Expert Determinations.

Mr Ashton has been responsible for expert reports produced and evidence adduced in over 150 cases of litigation and arbitration. Numerous cases have resulted in oral evidence being given (High Court, Arbitrations, Tax Commissioners, Iran-US Arbitration Tribunal and Expert Determinations).

Mr Ashton has lectured extensively on a wide range of subjects. He is a fellow of the Chartered Institute of Arbitrators, a fellow of the Academy of Experts, and a member of the Energy Institute. He was for several years a member of the executive committee and board of CEDR (the Centre for Effective Dispute Resolution). Mr Ashton is an accredited mediator under the requirements of the Academy of Experts and CEDR.

He held a number of management positions in Arthur Andersen, including head of computer audit, and head of the UK consulting services practice. He headed the European litigation services and valuation practices, and for several years was responsible for quality control across the European business consulting practice, as area managing practice director.

Mr Ashton is a member of the Regulatory Decisions Committee of the Financial Services Authority. He has been the Leader of Harrow Council, and was a Councillor for the London Borough of Harrow from 1998, stepping down in 2010. His responsibilities included that of the finance portfolio. He sat on the Audit Committee for London Councils.
 

Qualifications

  • BSc Economics with Accounting and Finance, London School of Economics
  • FCA, Institute of Chartered Accountants in England & Wales
  • FCIArb, Fellow of the Chartered Institute of Arbitrators
  • FAE, Fellow of the Academy of Experts
  • QDR, Qualified Dispute Resolver

Professional Memberships

  • Member of the Energy Institute
  • The Arbitration Club–Law Courts Branch

Present Positions

FTI Consulting, Senior Managing Director, 31 March 2011 to present

Previous Positions

  • LECG, Director, September 2002 to present
  • Arthur Andersen, Partner–Economic and Financial Consulting, 1982–2002

Professional Experience

Construction Claims

Property

  • Preparation of an expert report on damages for the defendant in a claim arising from a major property development. The total costs of construction were approximately £50 million.
  • Expert report regarding the financial effect of overruns and late completion of a development of apartments.

Energy

  • Losses due to abortive investment in waste energy regeneration plant.
  • Determination of claimable overrun costs on a North Sea offshore project.
  • Expert report on liquidated damages due to late completion of a power station.
  • Economic analysis and study of appropriate model for tariff costs in negotiations between gas shippers and OFGAS.
  • Expert report and evidence given before arbitration on assets vesting on privatisation.

Transportation

  • Expert report in dispute over life cycle costs of Northern Line rolling stock.
  • Assistance relating to the allocation of costs to the Channel Tunnel project. The dispute focused upon the appropriate method of allocating common costs to different elements of this major construction project.

Post Acquisition Disputes

Manufacturing

  • Advice regarding disputed consideration for company in heavy manufacturing.
  • Assistance with expert determination and subsequent litigation regarding the underlying value of an international group of companies selling sewing and knitting machines.
  • Advice regarding the valuation of, and allegedly negligent advice regarding, a company making computer colour measuring systems.
  • Advice and analysis regarding acquisition of a German furniture making company and alleged false accounting information.
  • Expert report on accounting implication of purchase and sale of a steel company.
  • Two cases of calculation of impact of accounting warranties given in disputed purchase considerations.
  • Determination of proper value of furniture company, due to alleged misrepresentation.
  • Assessment of proper net book value of heating and lighting company on sale. Evidence given to expert appointed by the parties.

Shipping

  • Assistance in responding to and quantifying a major claim relating to the privatisation of Scott Lithgow.

Construction

  • Assessment of improper calculations of the underlying value of a building company on acquisition.

Financial Services

  • Assessment of damages due to alleged misrepresentation as to value of a bank’s loan portfolio on purchase.
  • Advice and analysis regarding the value of alleged warranty breaches on the acquisition of a vehicle leasing company.

Distribution

  • Determination of appropriate level of distribution company profit earn-out.

Environment

  • Determination of the proper value as warranted of a waste infill site.

Leisure

  • Advice regarding proper accounting treatment and valuation of a hotel chain investment.
  • Advice in a mediation regarding tax loss implications of a sale and purchase agreement.

Asset Ownership/ Valuation Disputes

Shipping

  • Assessment of financial damage arising from the loss of a single buoy mooring facility. Evidence given in admiralty court.
  • Determination of forward profitability and valuation of international petrochemical and shipping group. Evidence given in international tribunal.
  • Determination of effect on value of a tanker subject to Arab boycott.
  • Valuation of 50% of port and tug company under requirement of articles.
  • Expert report on Polish shipping loss currency determination.

Transportation

  • Valuation of a 60% interest in a freight trans-shipment company.

Retail

  • Analysis of losses arising from the expropriation of assets by the Iranian government in 1979.
  • Evidence given before the Iran: US arbitration tribunal.
  • Expert report on behalf of the plaintiff relating to stock losses comprising several hundred thousand packets of cigarettes held in a bonded warehouse.
  • Valuation of major drinks brand with regard to a cross-border tax dispute.
  • Assessment of value of public house on termination of management contract.
  • Expert report and evidence regarding valuation of major Irish retail chain–before the Irish tax appeals commissioner.

Professional Services

  • Determination of proper level of profits of a professional partnership.
  • Valuation of dissenting minority interest in a privately held company.

Manufacturing

  • Valuation of group transferred across jurisdiction boundaries for IRS tax claim.
  • Dispute in furniture business due to cancelled contract.
  • Valuation of major overseas group for US tax purposes.
  • Valuation of a new perfume brand.

Energy

  • Valuation of an interest in hydro-electric power investments.
  • Advice and expert report regarding valuation of preference shares in a major European energy company.
  • Valuation of interest in a UK power station.

Distribution

  • Desktop valuation of major Middle East trading group.

Financial services

  • Expert reports re impact on value of a major car insurance company, allegedly impacted by breached warranties
  • Calculation of value of Romanian bonds issued in 1929/1931 for a restitution claim.
  • Valuation of investment in Bahamian investment fund.
  • Expert reports re impact on value of a major car insurance company, allegedly impacted by breached warranties.
  • Valuation of Northern Rock for judicial review re nationalisation.

Leisure

  • Assistance regarding the value of certain option rights held by travel agent franchise holders on insolvency of the franchisor.
  • Valuation of extensive chain of UK cinemas on acquisition.

Fraud and other investigations

Defence

  • Investigation into the extent of an alleged $200 million fraud perpetrated by the management of a major US defence contractor.

Shipping

  • Investigation into the validity of expenses charged by a vessel management company.

Financial services

  • Accounting review regarding an alleged commodities fraud.
  • Detailed report on alleged fraudulent banking and impact on timing of a customer’s insolvency. Two major cases involving claims on underwriters.
  • Expert report on effect of alleged manipulation of group structure to deprive an investor of value.
  • Detailed investigation into an alleged fraud regarding handling of substantial Middle Eastern funds.
  • Overall quality control partner on a huge banking fraud.
  • Expert report on alleged fraudulent loan applications and misrepresentations by an international trading group.
  • Report regarding a company’s ability to meet legal costs.
  • Direct lead responsibility for a major investigation into allegations of dormant accounts of Holocaust victims wrongly held by Swiss Banks – involving hundreds of investigators over three years.
  • Expert review of value of failed Californian fruit and nut company, and appropriateness of bank lending.

Leisure

  • Investigation into a major sporting event in response to a libel claim.

Media

  • Expert report regarding costing of film production and alleged misuse of funds.

Distribution

  • Expert report on alleged fraudulent accounting in the UK subsidiary of French parent company.

Retail

  • Investigation of allegedly fraudulent accounting in a jewellery business.
  • Assessment of unexplained stock losses in hosiery company.
  • Advice regarding irregularities in liquidation of French grain importer.

Professional Services

  • Assessment of losses arising on wrongful liquidation of company.

Property

  • Investigation into the costs suffered due to an alleged libel of a company providing sheltered housing accommodation.


Insurance Claims

Personal Injury

  • Determination of loss of earnings due to whiplash suffered in car accident.


Professional Services

  • Assistance and expert input on claim arising from the effect of the Bishopsgate bomb on a professional services firm. Evidence given in arbitration.


Distribution

  • Determination of loss arising from fire at a large newsprint warehouse.


Manufacturing

  • Assessment of loss of profits due to fire at an electrical components factory.


Shipping

  • Determination of loss at major UK shipping terminal due to cranes suffering storm damage.


Negligence Claims

Property

  • Preparation of an expert report on behalf of a major firm of chartered surveyors relating to costs incurred on a leisure property development due to alleged negligent advice.


Professional Services

  • Analysis of damages in respect of a substantial damages claim for audit negligence on behalf of a Big 4 accounting firm.
  • Determination of damages due to alleged negligent audit of international group.
  • Expert report on alleged negligent advice re deferred tax.
  • Analysis of damages in respect of a substantial damages claim for audit negligence on behalf of a Big 6 accounting firm
  • Analysis of losses arising from the issue of shares for nil consideration, as a result of the alleged negligence of a firm of solicitors.


Financial Services

  • Expert report on impact on purchase price of alleged negligent merchant bank advice.
  • Report on losses due to poor investment banking.
  • Report on lost profits due to alleged negligent investment advice.
  • Investigation and assistance to pension fund in negotiations with fund managers regarding alleged negligent administration.
  • Expert reports regarding alleged negligent valuation and advice on a major leasing acquisition by a public limited company (PLC). Evidence given in mediation.

Retail

  • Expert report on cost of negligent advice re marketing strategy.
  • Advice and analysis regarding insurance cover and likely costs arising under a sales motivation programme.
  • Advice and assistance regarding alleged losses acquiring from faulty construction of warehouse superstore.

Information Technology

  • Two cases regarding lost profits due to installation of alleged faulty computer systems.
  • Expert report on professional negligence claim regarding valuation of minority interest in a software distribution company. Evidence given in Birmingham Court.
  • Assistance in dispute regarding proper operation of a hub service provider of electronic property searches, encompassing several reports and assistance in successful negotiations.
  • Advice regarding alleged negligent planning for installation of a major system, with a focus on project management.

Manufacturing

  • Expert report on damages resulting from contaminated raw material in paint production.
  • Advice regarding losses allegedly arising from faulty lighting components. Evidence given in High Court.

Energy

  • Advice regarding the administration of a major UK energy group, and allegations by the Administrators of negligence on the part of the Directors.

Loss of Profits Claims

Manufacturing

  • Advice and analysis regarding losses caused by alleged faulty installation of a paint-spray line.
  • Calculation of profits foregone on a cancelled electronics product development project.
  • Calculation of claim for loss of profits due to alleged negligent consulting advice on design of range of diesel engines.

Media

  • Analysis on behalf of the defendant of damages suffered by a printing company resulting from an enforced move of premises. Damages claimed comprised both consequential costs and continuing loss of profits arising from business interruption.
  • Report on costs involved in administration of a magazine.
  • Expert report on approach to negotiations and the basis of a business plan for on-line betting.

Retail

  • Expert report regarding alleged lost profits due to building works on a high street restaurant.
  • Expert report regarding alleged lost profits due to building works on a hi-fi shop.
  • Assistance in calculating book publisher’s losses due to alleged faulty warehouse distribution system.
  • Expert advice regarding the value of a card and novelty retail chain
  • Expert report for arbitration re lost profits on sports goods licence cancellation. Evidence given at London arbitration.

Shipping

  • Assessment of damages due to late delivery of vessel. Evidence given at London Arbitration.

Leisure

  • Expert report on lost profits arising from anticipated closure of a sports complex due to a faulty roof.
  • Determination of profit lost due to allegedly negligent administration of hotel chain.

Distribution

  • Expert report and advice on the costs and lost profits from allegedly faulty containers.
  • Assessment of appropriate rate under a cancelled wholesale break-bulk distribution contract.
  • Expert report on alleged losses suffered by newspaper distributor on cancellation of distribution contract (three cases).
  • Expert report on lost profits due to cancellation of freight and trans-shipment contract.
  • Expert report on value of European fruit distribution.
  • Determination of losses suffered by a major sportswear company arising from an alleged breach of contract by a distributor.
  • Expert report on alleged breaches of a contract of supply on companies in Eastern Europe.

Information Technology

  • Calculation in expert report of lost profits due to abandonment of hi-tech manufacturing project.

Telecoms

  • Expert report on the impact of an alleged breach of contract on tendering for a major Middle East telecoms project. Evidence given in ICC arbitration.

Healthcare

  • Expert report and evidence before mediation on value of company operating care homes for the elderly.

Professional Services

  • Assessment of loss due to alleged poaching of staff and clients.
  • Preparation of an expert report on behalf of an international inspection company relating to a claim for consequential loss of profits arising from the certification of allegedly fake perfume.

Education

  • Expert evidence on impact of foregone leasehold income on a charitable trust. Evidence given in Chancery division.

Construction

  • Calculation of profits lost due to cancellation of South African franchise due to boycott restriction.
  • Calculation of lost profits on cancelled shipbuilding contract for an oil/ bulk/ ore vessel.
  • Expert report on the impact of delays in the delivery of major equipment on the costs and profitability of an ammonia plant.
  • Determination of losses arising from a fire in part of an oil refinery.

Scientific

  • Expert determination of losses suffered by a laboratory on failure of critical air conditioning system.


Financial Services

  • Assessment of loss arising from mass departure of dealing group on financial markets company. Evidence given in High Court.
  • Review of lost profits claim by a photocopier supplier arising from breach of contract.
  • Expert report regarding the value of a hedged fund allegedly misappropriated.

Intellectual Property

Media

  • Assistance to a major broadcaster in negotiations with the owners of music copyright relating to the amount paid for the right to broadcast music on radio and television.
  • Assistance to a major publisher in the setting of rates for the licensing of advance programme listings following a governmental ruling on the subject.
  • Assisting a major broadcaster in responding to MMC investigations into music copyright.
  • Expert report prepared for copyright tribunal assisting major UK broadcaster as intervenor in AIRC v PPL hearing.
  • Assistance to major newspaper group in analysing industry data as part of an MMC referral.
  • Calculation of appropriate level of recording and publishing royalty rates. Evidence given in UK Chancery court.

Healthcare

  • Assessment of pharmaceutical licence of right royalty rate.
  • Valuation of patent in biomedical industry.

Retail

  • Expert assistance to major monopolies and mergers commission referral.

Manufacturing

  • Determination of a royalty rate under a copyright licence of right claim.

Telecoms

  • Report on appropriateness of write-down of goodwill under UK GAAP.

Acting as Expert Between Parties/Acting as Arbitrator

Energy

  • Auditor/Expert between two parties regarding a major dispute related to oil exploration in a country in Asia Minor. Appointment was by the President of the ICAEW. Two cases.

Information Technology

  • Expert between two companies in determination of capitalisation of software development costs.
  • Mediation between two major companies regarding treatment of costs for tax purposes under an acquisition agreement.

Retail

  • Expert between two companies regarding levels of stock at group of confectionery, tobacco, and news shops.
  • Expert in dispute between two clothing companies regarding a disposal.
  • Expert between parties on allocation of value of a major drinks company acquisition.

Transportation

  • Member of the financial disputes panel for the Lewisham extension of the Docklands Light Railway.
  • Expert in dispute regarding costs transferred from public to private entity.

Manufacturing

  • Mediation between parties and expert determination regarding disputed proper consideration due to alleged irregularities.

Professional Services

  • Expert in dispute regarding determination of dilapidations provision on sale of a large chain of estate agents.
  • Appointed mediator between professional firm and a departing partner regarding disputed terms on leaving partnership.

Construction

  • Expert in dispute over costs incurred on water treatment plant.
  • Expert between construction companies regarding costs incurred.

Property

  • Expert in dispute regarding sale and purchase of property companies.

Leisure

  • Overall quality control partner on major expert determination regarding value of chain of betting shops.

Financial Services

  • Costs analysis of insurance claim in a supply teachers claim mediation.
  • Arbitrator (one of three) in major dispute over the sale of a European bank.
  • Appointed mediator between trade union and leading company regarding disputed computer equipment agreement.
  • Appointed as one of three pre-mediators in the split capital investment trusts dispute.
  • Member of Arbitration Panel for the UK Asset Protection Scheme.

Litigation Information Consulting

Manufacturing

  • Imaging and linking to an existing database of 75,000 pages.
  • Imaging of a population of 850,000 pages to a Docufind database.
  • Overall responsibility for a major scanning and databuild project for a major piece of litigation (10 million pages plus)

 

Office

200 Aldersgate Aldersgate Street London EC1A 4HD United Kingdom
TEL +44 20 3727 1000 FAX +44 20 3727 1007

Education

Studied Economics with Accounting & Finance at London School of Economics

Association

Member of the Energy Institute

The Arbitration Club–Law Courts Branch

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