Case studies

High Court Claim related to Oil & Gas Services Company

Our client was defending a multi-billion dollar High Court claim in relation to alleged breaches of a long-term logistics contract. FRA was engaged to provide expert witness support and evidence in relation to the calculation of potential damages associated with loss of profits.

Challenge

Our client was defending a multi-billion dollar High Court claim in relation to alleged breaches of a long-term logistics contract. FRA was engaged to provide expert witness support and evidence in relation to the calculation of potential damages associated with loss of profits. Central to our work was the critical assessment of the claimant’s damages model and the construction of an alternative model based on the legal arguments set out in the defence. We helped the client deal with a complex multi-year transactional data set and contractual obligations.

Action

We prepared a valuation model that transparently embedded the logic of the defence and evidence provided by an industry expert witness. Through careful design we were able to present a model which enabled the efficient modelling of a range of “but for” scenarios of theoretical performance of a variety of contractual obligations by the defendant. We also modified the claimant’s quantum model to demonstrate the effect of assumptions inherent in the same scenarios thus providing a set of comparable damages valuations.

Results

While the case is ongoing, our work supported legal counsel in reducing the size of the initial claim to less than 5% of its value. Further, the flexibility and clarity of our modelling has enabled counsel to identify the most material elements of the case and focus attention on them. Finally, our engagement with the expert instructed by the claimant has crystallized the quantum effects of the differences between the parties’ cases.

Related contacts
Matt Rees
Director
,
London
Derek Patterson
Partner
,
London
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