This matter involves a Permanent Court of Arbitration (PCA) dispute between an international investor and the Republic of Estonia with respect to an alleged expropriation of the assets of a port and lumber business located in Tallinn, Estonia (PCA Case No. 2018-42). The owner of the allegedly expropriated assets claimed for losses from Estonia in a PCA dispute.

The Republic of Estonia retained NERA to assess the economic basis of the claimant’s asserted losses and to provide an independent estimate of damage. The NERA team, consisting of Senior Managing Director Dr. Richard Hern, Director Clara Segurola, and Consultant Tarek Badrakhan, was asked to present an independent assessment of damages and to respond to the opposing experts’ quantification of damages.

As part of their damages assessment, the NERA team reviewed historical account data and business plans for the allegedly expropriated company. They explored different valuation methodologies, including the discounted cash flow approach, cost approach, and evidence from market transactions and their relative merits in the context of the claimant’s investments in Estonia.

Dr. Hern presented the NERA team’s analysis on damages in two expert reports, and he provided oral testimony at a hearing via video conference in January 2022. In February 2025, the tribunal decided in favor of Estonia, dismissing all claims brought against it by the investor.

For more information, please click here for an article published by Global Arbitration Review (GAR).