Compass Lexecon Experts Assist UNCITRAL Tribunal in Granting c. US$ 160 Million in Damages to Diamante Trading and Others
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Compass Lexecon experts were retained by Diamante Trading and six members of the Herrera family to act as quantum experts in an investor-state arbitration against the Bolivarian Republic of Venezuela. The claims by our clients arose out of the government’s alleged expropriatory measures of a food distribution business. At the end of May 2025, the Permanent Court of Arbitration issued a favourable award for our client, awarding total damages amounting to c. US$ 160 million.
Situation
In 2019, Diamante Trading and six members of the Herrera family (the “Claimants”) filed UNCITRAL international arbitration proceedings against the Bolivarian Republic of Venezuela (“Venezuela”) (Diamante Trading Investments Ltd and others v. Bolivarian Republic of Venezuela, PCA Case No. 2019-49). The Claimants alleged inter alia that Venezuela’s 2015 takeover of a food distribution business owned by them had permanently destroyed their investment and amounted to an expropriation.
Our Role
Compass Lexecon experts Julian M. Delamer and Alan G. Rozenberg were retained by the Claimants as damages experts. Mr. Delamer and Mr. Rozenberg quantified the damages related to the expropriation of the distribution business owned by the Claimants using a discounted cash flow (DCF) method. Their valuation also included the Claimants’ stakes in real estate assets in Venezuela.
Outcome
In an Award rendered on May 27, 2025, the Permanent Court of Arbitration found Venezuela liable under the State’s bilateral investment treaties with Barbados and Spain. Largely relying on Mr. Delamer and Mr. Rozenberg’s opinions on quantum issues, including the use of Venezuela’s cost of debt of 11.5% as pre-award interest, the Tribunal awarded total damages to Diamante Trading et al. amounting to c. US$ 160 million as of today.
The Team
Mr. Delamer and Mr. Rozenberg were supported by a team including Federico Gonzalez Loray and Omar Urdaneta Martínez. Compass Lexecon worked with a Dechamps International Law team that included Jean Paul Dechamps, Gustavo Topalian, Pablo Jaroslavsky, and Marcos Sassot.