Quadrant’s Damages Experts Testify in Panamanian Construction and Public Works Arbitration.

Quadrant’s experts, Dr. Daniel Flores and Mr. Ryan McCann, were retained by the Republic of Panama (“Respondent”) as quantum experts in a construction sector arbitration initiated by Omega Engineering LLC and Mr. Oscar Rivera (“Claimants”) under the 1982 U.S.-Panama Bilateral Investment Treaty, the 2007 U.S.-Panama Trade Promotion Agreement, and ICSID rules (ICSID Case No. ARB/16/42). Claimant alleged that the Panamanian government took a series of measures that resulted in losses to Claimants’ wholly-owned Panamanian construction company, Omega Panama, related to existing and potential future public works construction contracts.  

Claimants allege that Panama failed to pay outstanding invoices, issue permits, and change orders on existing construction contracts as well as inflicted reputational harm, among other measures, that prevented Omega Panama from remaining a going concern, which effectively reduced its value to zero.

Dr. Flores and Mr. McCann testified on the fair market value standard and the Discounted Cash Flow analysis used by Claimants’ economic expert to value Claimants’ potential future contracts as well as the methodology used to value the existing contracts.

The Tribunal (President: Mr. Laurence Shore, Co-arbitrators: Dr. Horacio A. Grigera Naón and Prof. Zachary Douglas KC) rejected claims on their merits in its award.

Respondent was represented by Shearman & Sterling LLP.  Dr. Flores and Mr. McCann were supported by a Quadrant team that included Tomas Arocha, David Landers, and Andrés León.  

Sources: ICSID; IAReporter