Business Interruption Damage
March 31, 2022DownloadsDownload Case Study
Work carried out to extend a metro line caused major disruptions on a public highway, which lasted several years.
A hypermarket located in the area where the work was being carried out filed an application for interim relief before the Cergy-Pontoise administrative court to obtain compensation for the commercial damage suffered.
FTI Consulting was appointed by the claimant to assess the losses caused by the difficulties in accessing the business premises.
Our work focused on the following aspects:
- analysis of the evolution of the turnover before and after the commencement of the works;
- analysis of the correlation between the evolution of sales and the phasing of the construction site (causality);
- analysis of the impact of external factors (market trends, changes in the competitive environment, etc.) on sales;
- estimation of the loss of margin caused by the project (loss of turnover minus saved costs);
- identification and collection of supporting accounting documents.
Finally, we prepared an independent expert report to present our analysis and conclusions on the extent of the damage (several million euros).
In particular, our work made it possible to strengthen the demonstration of the causal link by analysing the impact of the work on sales excluding external factors (economic situation, competition).
Our report was sent to the administrative court to justify the compensation claimed by the claimant.