Assessment of War Damage Under EVS Jeremy Moody

Transcript:Assessment of War Damage Under EVS Jeremy Moody:
Assessment of War Damage Under EVS Jeremy Moody Vice Chairman, EVSB TEGoVA Warsaw Valuation Conference 17th June 2023 This is not Abstract …. Seedtime and Destruction Flood in Kherson Hospital in Dnipro Bakhmut Once a City - Mariinka Odessa Warehouse Church in Donbas Heat & Power Plant in Kharkiv Craters and Broken Lines Burning Crops Burning Fields …. But the Valuer must be Professional Overview The need to assess separately Damage and loss caused by the war to property, business and other matters caused Costs of restoration (potentially Building Back Better) The need to evidence and assess claims Finding the methodologies and process TEGOVA approached by Ukraine EVSB reviewed issues with SPFU Issued guidance, now broadened for war generally Learn from precedent with experience of Kuwait How to do all this well, ensuring trust? Compensation for Loss The 1927 Chorzow decision “The essential principle of an illegal act .. is that reparation must as far as possible .. re-establish the situation that would, in all probability, have existed if that act had not been committed.” Restoration – not improvement Followed by the UN Compensation Commission for Kuwait after 1990 invasion Adopted by the International Law Commission Basis of action for reparations claims Basis Loss compared to the day before hostilities Need the best evidence of values then – and now Need good evidence to prove the loss As war damage Contemporary records, photographs, … Technology - drones, LiDAR, satellite, modelling Objective independent evidence where possible Delay weakens evidence, risks confusion, … The challenge of inspection War zones - land mines, munitions, contamination Easier in other areas but … Verifying other losses – machinery, money, … Approach to Assessment Date for assessing losses – start of the war Before 24th February 2022 for current war Before 20th February 2014 for occupied areas For claimant to make their case Allows for the variety of cases Keeping contemporary evidence Valuation assumption as to title Valuation assumption as to pre-war condition Standard valuation methodologies - EVS Business - use most recent data, accounts etc Comply and use EVS as recognised standards Heads of Claim Property taken or affected Loss of market value at the date Total write-off? Cost of remediation? Equivalent reinstatement Business destruction and disruption, such as: Repairs from buildings to restoring soils/ drainage Values of plant, equipment, inventories Frustrated contracts Extra storage costs The valuation and other professional fees State procedure to