Assessing Contractual Non-Compliance Damages in Central Africa

Explore how NAVITAS FINANCE CONSULTING provided crucial economic analysis in a high-stakes arbitration involving an industrial multinational and a logistics provider in Central Africa.

BUSINESS CASE

NAVITAS FINANCE CONSULTING

1/9/20201 min read

A Central African-based industrial multinational company approached a law firm, our client, regarding an arbitration conducted by the International Chamber of Commerce in Paris.

Bound by a service contract to a prominent African logistics provider, the industrial company expressed grievances over the logistician's preference for road over rail transport—despite the latter's significant cost benefits.

This contract breach led to a dispute presented at the ICC’s arbitration court. The logistician, benefiting from an information asymmetry on transport costs, managed to exploit the transportation means to protect his financial interests at the expense of the industrial company.

Commissioned by the lawyers of the industrial multinational, NAVITAS FINANCE CONSULTING was tasked with conducting a comparative economic analysis of the two transportation methods in Central Africa. The objective was to establish that the company suffered financially and to quantify the extent of the material damages incurred.