27 Aug 2021 Cases

Tribunal Rules in Favor of Compass Lexecon's Client in a Fishing Industry Dispute

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Tribunal Fully Endorses Expert Opinion of Compass Lexecon Executive Vice Presidents Sebastian Zuccon and Marcelo Schoeters

Compass Lexecon Experts Sebastian Zuccon and Marcelo Schoeters were retained by Claimant to provide expert testimony in a commercial arbitration in the Argentine fishing industry. Compass Lexecon Experts assessed whether Respondents sold the shares of a major fishing company at a fair market value. The Claimant, formerly the company's major shareholder, entered a financing agreement and Stock Option Agreement ("SOA") with Respondents. Under the SOA, if the firm was sold to a third party, the Claimant was entitled to charge a commission of 30% of the selling price over a specific amount, already collected by Claimant within the framework of the previous transfer of shares to Respondents. A few months after the agreement, Respondents sold 100% of the company's shares to a related party for a meager price of US$ 0.6 million, not generating any commission to Claimant.

Compass Lexecon experts performed multiple analyses and determined fair market value at the date of the transaction was US$ 30 million. Their studies show that the sale price did not represent the company's fair market value. Based on Mr. Zuccon and Mr. Schoeters analysis and valuation, the ICC Tribunal ruled that the selling price was significantly lower than the fair market value therefore granting damages to the Claimant.

Sebastian Zuccon and Marcelo Schoeters were supported by a team in Compass Lexecon’s Buenos Aires office that included Julieta Fridland, and Emiliano Zenarruza. Compass Lexecon worked closely with legal teams from Philippi, Prietocarrizosa, Ferrero Du & Uría Abogados and Fiorito, Murray & Díaz Cordero Abogados.

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