Practical and Ethical Problems in Damage Evaluation and Claims
This technical note briefly discusses some fundamental issues related to damage evaluation and claim introducing some important practical and ethical problems associated with it. It is important to immediately highlight that this issue is becoming increasingly important for managers and decision makers around the world for at least three reasons. First, globalization and increased use of technological and operational complexity increases the exposure of companies to material and immaterial damages. Thus, managers often have to deal with the quantification of damages in the context of trials, arbitrations and out-of-court settlements. Second, the legislations of European and North American countries are progressively increasing the liability of top managers for the eventual damages caused by their decisions to the company and to critical stakeholders such as customers, suppliers and partners. Third, the spread of consumers' associations, and the even more frequent use of class actions, is increasing the number of legal proceedings against companies.