International arbitration experts are typically appointed by the parties, rather than the arbitral tribunal, although the rules of most arbitral institutions give the arbitral tribunal the power to appoint experts should it wish to do so. Damages experts, or quantum experts, are the most commonly used international arbitration experts by parties for complex claims. Expert witnesses, however, can be appointed for anything that may be useful in an international arbitration, and it is frequent to find legal experts, linguistic experts, industry experts, delay experts and forensic experts who have been appointed by one party, often obliging the other party to appoint their own experts in response.
While damages experts are often unnecessary for simple contractual violations, they can be essential for more complex valuations such as the creation of discounted cash flow models to determine the value of an investment or asset at a particular point in time, price determinations in the energy industry, the valuation of delay and disruption claims, event study analyses to determine the impact of specific events on the price of shares, and models that attempt to valuate more nebulous concepts such as moral damages. Arbitration lawyers work closely with international arbitration experts in order to ensure that the valuation that has been provided complies with applicable legal norms, but the expert, who will eventually be cross-examined on his or her expert testimony, in theory has the last say with respect to the calculations that he or she has provided.
The use of expert witnesses is often the second-largest head of cost with respect to international arbitrations, after the fees of arbitration legal counsel. International arbitration experts can charge many hundreds of thousands of Euros for their work over the duration of a complex international arbitration. As with lawyers, however, the price varies considerably, with no direct correlation between the prowess of the expert and the fees that will be charged, so parties to an arbitration are well-advised to speak with multiple experts in order to determine the one with the most appropriate characteristics for a given case.
Below is a comprehensive list of international arbitration experts capable of valuating damages.