IBA Arb40 – Young ICCA Skills Training Workshop: The Computation of Damages: Principles and Practical Approaches
Young ICCA and the IBA Arb40 jointly organised this Skills Training Workshop on the computation of damages.
As you might know, in most arbitrations, the primary relief sought by the claimant is damages. Therefore, in order to effectively represent their clients’ best interests, arbitration practitioners must have a clear understanding of the principles underlying damages computation, as well as the methodologies available for proof of damages. Equally important, practitioners must develop know-how around practical issues such as the nature of evidence required to support damages claims, and case management to ensure the damages claim is presented in the most effective way possible.
The workshop is split into two sessions. The first session, led by legal practitioners, will discuss, the applicable legal principles, practical aspects of a damages claim and the techniques for proactive case management.
The second session, led by quantum experts, will discuss one or more typical quantum claims, to illustrate the methodologies used in calculating the quantum of damages, and in resisting damages claims.
Post Event Report
by Oluwatosin Selomeh Ogunlana ACArb
Research Assistant, Institute for Oil, Gas, Energy, Environment and Sustainable Development, Afe Babalola University Ado-Ekiti, Nigeria.
The 2019 IBA Arb40 – Young ICCA Workshop which held on Tuesday, 10th of December, 2019 at Aluko & Oyebode, Ikoyi, Lagos, Nigeria. The objective of the workshop can be summarised as follows:
- To educate participant on computation of damages. This is because the primary relief sought in any arbitral claim is damages.
- To demystify the principle of damages computation, as well as the various strategies to proof damages.
- To engage on practical issues that may arise during and in preparation of an arbitral proceeding.
The workshop was attended by 100 participants. The workshop commenced with an opening session by the representative of Young ICCA, Mr. Faruq Abbas, Managing Partner, Abdu-Salaam Abbas & Co. He gave brief remarks about the work of the International Council for Commercial Arbitration (ICCA) including promoting international arbitration globally, and also about the role of Young International Council for Commercial Arbitration in opening the doors of international arbitration to young practitioners.
The topic of the first session was “Applicable Legal Principles for Calculating the Quantum of Damages”. Two panellists spoke in the first session Nania Owusu-Ankomah MCIArb(Senior Associate, Bentsi-Enchil & Ankomah) and Kolawole Mayomi, (Associate Partner, S.P.A. Ajibade & Co.) Nania made a presentation titled “Types/Categories of Damages and How to Establish Right to Damages” while Kolawole presented on “Role of Interest in performing the Compensation Function of Damages”. The broad themes of their presentations were damages, interest and mitigation. They spoke on how to make a claim and establish damages, how interest can be claimed and established and the imperative of mitigating damages. This Panel was moderated by Hamid Abdulkareem, (Partner at Aluko & Oyebode). A tea break concluded the first session.
The topic of the second session was “Practical Issues on Quantum Claims”. Mr Babatunde Fagbohunlu SAN, (Partner, Aluko & Oyebode), a Legal Practitioner and Ian Clemmence, (Director, PricewaterhouseCoopers (PwC).),a Quantum Expert led the session. This was more of an interactive session.The Panellists gave practical insights into how quantum claims are made, the three phases in which a claim should be divided and considered from; the considerations when putting together a team to determine quantum; the nature of evidence required to support damage claims; and case management to ensure damages claim is presented in the most productive way. The panellists also highlighted pitfalls to avoid, and finally, the type of tax damages will be subjected to. After the session, there was a lunch break.
After the break, Ian Clemmence made a presentation introducing the key methodologies used to value damages which are the asset approach based on the value of the business’s underlying asset less outstanding liabilities; the market approach which is benchmarked to publicly available data on a business; and the income approach based on the business’s prospective return on investment. He also discussed subset methodologies as well as key considerations in choosing a methodology and practical considerations when valuing damages. This session was closed off with a discussion of a case study on a typical quantum claim. Panellists were also open to further engagements after their session.
A cocktail reception concluded the event.
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