Contract Termination in Aerospace Industry
CHS was retained by Counsel for a Canadian aerospace company in arbitration proceedings relating to the termination of a contract due to a Force Majeure event. The contract related to the construction of a significant piece of aerospace equipment for a foreign government. CHS was asked to review and report on the methodology, assumptions and accuracy/reasonableness of the data used and calculations undertaken by the company in compiling costs and other entitlements under the termination proposal. Farley Cohen testified at the arbitration.
The arbitration tribunal substantially agreed with the findings of the CHS report and Mr. Cohen’s testimony and the client was awarded significant costs and a reasonable profit after the tribunal determined that the client had a right to terminate the agreement and the claim had merit.