WWW.LAWYER-MONTHLY.COM | MAY 2022 66 THOUGHT LEADER - SANDY COWAN The Role of Forensic Accountants in Dispute Resolution The expertise of a forensic accountant is required for various legal claims where a financial loss is involved. We hear below from Sandy Cowan, accredited forensic accountant and partner at Mazars, who goes in depth on the many interesting facets of the role, the skills required to perform it effectively and its importance for the just outcomes of many disputes. My ideal dispute would be an M&A dispute in international arbitration. How is the input of a forensic accountant crucial to the just outcome of these proceedings? The basic rule of damages is that the claimant is entitled to a sum of money which will put the claimant in the same position they would have been but for the wrongful act. Therefore, damages are a critical component of most cases. Tribunals and Courts that misunderstand the relevant damages do not render justice to the parties and may not put the aggrieved party back in the position it would have been but for the act. In order to receive the fairest outcome, it is important to establish what the claimant’s actual losses are, if any. If we consider the role of a forensic accountant as an expert witness, what must be considered within the remit - John Tenor, GAR: ‘The Guide to Damages in International Arbitration’ As a forensic accountant at Mazars, in what disputes are you typically called upon to provide your perspective? As a forensic accountant I am typically called upon to advise on a range of different disputes across industries. I have experience in expert and advisory work in both litigation and international arbitration, having worked in the context of instructions in the High Court (the Commercial Division) and arbitral proceedings in many jurisdictions (under ICC, ICSID, DWT, Ad hoc and LCIA) and Expert Determinations (in particular those arising from post M&A disputes). My dispute resolution experience includes breach of contract claims, bilateral investment treaty disputes, completion account disputes, postacquisition warranty claims, loss of profits claims and contentious valuations. That is the great thing about being a forensic accountant – our work is always varied, which keeps it interesting. Tribunals and Courts that misunderstand the relevant damages do not render justice to the parties and may not put the aggrieved party back in the position it would have been but for the act.
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