Economic Damages: A Reconsideration of Retrospective Valuation
How the Date of Assessment Can Impact the Assessment of Economic Losses?
July 25, 2023DownloadsDownload Article
This article from GAR Middle Eastern and African Arbitration Review 2023 was first published in April 2023. The entire publication is available at: https://globalarbitrationreview.com/review/the-middle-eastern-and-african-arbitration-review/2023
The methodology used by valuation and damages experts, as well as the information that they can take into account when assessing economic losses, are significantly influenced by the date on which the damages are to be assessed. This article examines the legal and valuation principles that underpin the determination of the appropriate date of assessment for damages.
Firstly, we explore the legal principles (under both common law and civil law) that govern the determination of the appropriate date of assessment and related approaches. Then, we discuss the practical implications of this determination on the quantification of damages.
The selection of the date of assessment guides the information that can be used by experts in their assessment of damages. In times of economic uncertainty or volatility, even small changes to the date of assessment may have material impacts on the assessment of damages.
Reproduced with permission from Law Business Research Ltd.
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