Assessment of damages in R1-billion claim
Genesis provided an independent assessment of the appropriate damages quantum following the repudiation of an agreement between two large South African companies in the communications sector. The analysis was performed on behalf of the defendant in a claim that exceeded R1-billion.
The assessment involved the determination of the loss of profits arising within the context of the agreement having been repudiated before the business was launched. The challenge in this case arose from forecasting the loss of profits where there was no prior business history and where the available data on financial performance was limited.
We assisted the legal team throughout the litigation process, ensuring that sufficient evidence was gathered through the discovery process so that we were able to provide a defendable and reasoned expert opinion on the damages claim. Our project team combined its experience in economics, accounting and modelling with its in-depth understanding of the communications sector to develop a robust economic model in order to quantify the damages claim.
The case was ultimately settled and the input provided by Genesis helped the legal team and the client to determine an appropriate amount as the basis of the settlement negotiations.