Daubert standard

The Daubert standard is a US federal legal framework (Daubert v. Merrell Dow Pharmaceuticals, 1993) governing the admissibility of expert testimony in federal courts. Under Daubert, the judge acts as gatekeeper to ensure expert evidence is based on reliable scientific methodology: the theory must be testable, peer-reviewed, have a known error rate and be generally accepted in the relevant scientific community. While not directly applicable in Swiss or French jurisdictions, the Daubert principles heavily influence international arbitration practice and the standards expected of financial expert reports — particularly in ICC and LCIA proceedings involving US parties or US-law-governed contracts.

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Example: in an ICC arbitration involving a US acquirer and a Swiss seller, the financial expert's valuation report is challenged under Daubert-inspired standards. The tribunal requires the expert to demonstrate the methodological reliability of the DCF model, the peer-reviewed basis of the beta selection methodology and the empirical support for the specific risk premium applied — all consistent with Daubert's evidentiary rigour.

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Hectelion prepares financial expert reports meeting both European and US evidentiary standards, ensuring admissibility in international arbitration proceedings.