Arbitration

In the sector of litigation consultation and expert testimony Gustavson Associates has many years of experience. A handful of senior employees have testified as experts in courts of law and in arbitration proceedings. Here is a recent example, where Gustavson Associates was retained by King & Spalding, attorneys for ChevronTexaco, to estimate the damages sustained by Texaco China in a claimed contract breach by Apache Corporation. Gustavson Associates developed the damage model and testified in front of the arbitration tribunal, whose findings were favorable to our client. We quote from the public domain, namely Apache’s recent 10Q filing on this subject:

“11. LITIGATION

China - Apache recorded a reserve in the second quarter of 2004 to fully reflect a pre-tax $71 million international arbitration award to Texaco China B.V. (Texaco China). In September 2001, Texaco China initiated an arbitration proceeding against Apache China Corporation LDC (Apache China), later adding Apache Bohai Corporation LDC (Apache Bohai) to the arbitration. In the arbitration Texaco China claimed damages, plus interest, arising from Apache Bohai's alleged failure to drill three wells, prior to re-assignment of the interest to Texaco China. Apache believes that the finding of the arbitrator is unsupported by the facts and the law, and Apache has filed and is pursuing an application to vacate the award in federal court. Texaco China has filed an application to confirm the award in the same court.”

Source: APACHE CORPORATION, FORM 10-Q, Period Ended September 30, 2004.