Damages

Damages are the monetary compensation awarded to a party that has suffered loss as a result of another party's breach of contract or wrongful act. They comprise actual loss already incurred (damnum emergens) and lost future profits (lucrum cessans). In commercial litigation and arbitration arising from M&A transactions — warranty breaches, earn-out disputes, non-compete violations — quantifying damages requires financial modelling, market analysis and the construction of a credible but-for scenario. The burden of proof typically lies with the claimant, requiring rigorous documentation and an independent expert report.

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Example: following the acquisition of a Swiss company for CHF 18.0 million, an undisclosed environmental liability of CHF 2.8 million is discovered. The buyer claims damages under the asset and liability warranty. Hectelion quantifies the loss: the net claim after the contractual basket (CHF 150,000) is CHF 2.65 million — supported by remediation cost estimates, legal opinions on enforceability and an independent expert report submitted to the arbitral tribunal.

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Hectelion quantifies damages in commercial litigation and M&A disputes, providing independent financial expert reports for arbitral and judicial proceedings.