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Darrell Chodorow is a consultant with 25 years of experience in commercial damages, valuation, and tax matters.

His work has covered a broad array of industries including oil, natural gas, and electricity; biotechnology, pharmaceuticals, and chemicals; commodities and financial services; gaming; consumer products; technology and media; and transportation. Mr. Chodorow has been identified as a leading expert witness in arbitration, quantum of damages, and construction quantum and delay by the Who’s Who Legal Consulting Experts Guide.

Commercial Damages: Mr. Chodorow provides expert testimony and consulting advice on damages in breach of contract, intellectual property, antitrust, and other matters. He has acted as an expert in cases before U.S. state and federal courts and the District Court of Cyprus, as well as arbitrations before AAA, ICSID, ICC, LCIA, PCA, and ad hoc tribunals.

Business and Asset Valuation: Mr. Chodorow has valued businesses and financial assets in litigation and non-litigation matters. He has valued assets in a variety of sectors including agricultural products, cement, chemicals, financial products, gaming, mining, oil & gas, and electricity.

Tax Disputes: Mr. Chodorow has acted as an expert for the Internal Revenue Service, the U.S. Department of Justice, and taxpayers. He has testified in U.S. Tax Court. His work has included cases related to economic substance, transfer pricing, asset valuation, derivatives and hedging transactions, and research tax credits.

Representative Engagements
Bilcon of Delaware et al v. Government of Canada, Permanent Court of Arbitration (PCA)

The Claimants were seeking to build a basalt quarry and marine terminal in Nova Scotia, and brought a NAFTA arbitration claim after federal and provincial governments denied the project its permits. The Tribunal found that the permit review process was in breach of NAFTA’s national treatment standards in the liability phase. During the damages phase, the Claimants requested an award of $443 million. Retained by Canada to evaluate the reasonableness of this claim, Mr. Chodorow explained that, given the particular circumstances of this project, the Claimants’ request was excessive and inconsistent with past transactions of ownership interests in the project, and that past investment in the project was limited. The Tribunal concluded that, based on the prior transactions and past investment in the project, the value of the opportunity lost by the Claimants due to Canada’s breach was $7 million.

City of Ontario v. City of Los Angeles, et al. (Case No. RIC 1306498)

The City of Los Angeles (LA) owned and operated the Ontario International Airport. The City of Ontario filed suit claiming that LA breached its obligation to exercise best efforts to attract air service to Ontario’s airport, instead favoring its own Los Angeles International Airport (LAX). Ontario claimed that the breach caused damages of $2-3 billion. Retained on behalf of the City of LA to evaluate the reasonableness of these claims, Mr. Chodorow concluded that, if LA did breach its obligations, Ontario’s actual losses were a small fraction of those claimed and that the vast majority of losses suffered by Ontario were caused by the 2008 Financial Crisis, not the alleged breach. The case settled just before trial with Ontario paying $190 million to acquire the airport, but with no payment by LA for the claimed damages. The dispute was widely covered in the press, including the New York Times and Los Angeles Times.

Petitioners v. Commissioner of Internal Revenue (U.S. Tax Court, Docket No. 1910-14)

A third party entered into a €5.8 million loan for which the Petitioners assumed joint and several liability. As a result of entering into this transaction structure, known as CARDS, the Petitioners claimed a tax loss of $4.3 million. The U.S. Internal Revenue Service challenged the transaction on the basis that the transaction lacked economic substance and that the loss claimed was artificial. Mr. Chodorow was retained by the Internal Revenue Service to evaluate the impact of the transaction on the Petitioners’ economic position, and to assess the claimed business rationale for entering into the transaction. He concluded that the transaction was not economically rational absent the claimed tax benefits. The U.S. Tax Court found that the transaction lacked economic substance and that the claimed business purpose was not credible, noting in its opinion that “we find Mr. Chodorow’s report and related testimony persuasive.” The claimed tax loss arising from the transaction was therefore disallowed.

Kayat Trading Ltd. v. Genzyme Corporation

Kayat, a Cypriot company, alleged that Genzyme breached an exclusive distribution agreement for the Former Soviet Union, resulting in damages in excess of $300 million. To support its claim, Kayat presented expert testimony on sales but for the alleged breach, and damages. On behalf of Genzyme, Mr. Chodorow provided expert testimony explaining key flaws in the methodology and implementation of the analyses conducted by the plaintiff’s experts that made their conclusions unreliable and overstated. The court agreed with these conclusions. The ruling found that Genzyme had breached the distribution agreement, but awarded Kayat only $7.6 million in damages.

Testimony
International Centre for Settlement of Investment Disputes, Case No. ARB/13/18 (Enel Green Power S.p.A. (“Enel”) v. Republic of El Salvador). Expert report assessing the contingent value of Enel’s ownership stake in LaGeo S.A. de C.V. (“LaGeo”), a geothermal development and operating company with a portfolio of assets in El Salvador, associated with Enel’s rights under a shareholder agreement with the government of El Salvador.
December 5, 2014
SCS Interactive, Inc. and Whitewater West Industries Ltd v. Vortex Aquatic Structures International Inc., U.S. District Court of Colorado, Civil Action No. 09-cv-01732-REB-KLM. Expert Report
Kayat Trading Ltd. v. Genzyme Corporation, Cyprus District Court, Nicosia District. Expert Report and Testimony
ErinMedia, LLC v. Nielsen Media Research, Inc., U.S. District Court, Middle District of Florida. Civil Action No. 8:05-CV-1123-T24-EAJ. Expert Report and Deposition Testimony
Embrex, Inc. v. Avitech, L.L.C. U.S. District Court, Middle District of North Carolina. Civil Action No. 1:04CV00693. Expert Report

The Northern Cheyenne Tribe v. Gale A Norton, Secretary of the Interior and Fidelity Exploration and Production Company, U.S. District Court, District of Montana, Billings, Civil Action No. CV-03-00078-RWA. Expert Declaration

Agrizap, Inc. v. Woodstream Corp., et al., U.S. District Court, Eastern District of Pennsylvania. Civil Action No. 04-3925. Expert Report
Robert Rockwood and Roxanna Marchosky v. SKF USA, Inc. U.S. District Court for the District of New Hampshire, Civil Action No. 1:08-CV-00168. Expert Report
Petroplast Petrofisa Plasticos S.A. and Petrofisa Do Brazil, Ltda v. Ameron International Corp., Delaware Court of Chancery, Civil Action No. 4304-VCP. Expert Report, Deposition Testimony, and Testimony
Perfetti Van Melle USA and Perfetti Van Melle Benelux v. Cadbury Adams USA LLC, U.S. District Court for the Eastern District of Kentucky, Civil Action No. 2:10-CV-35-DLB. Expert Declaration and Testimony
Norfolk Southern Railway Company v. Drummond Coal Sales, Inc., U.S. District Court, Western District of Virginia. Civil Action No. 7:08CV00340. Expert Report
Laboratorios Haymann S.A. v. Ivax Pharmaceuticals, Inc. and Teva Pharmaceuticals USA, Inc., International Chamber of Commerce International Court of Arbitration, Case No. ICC 18589/CA. Expert Report
Coverings Space NJ, Inc. v. Adele, et al., Superior Court of New Jersey. Civil Action HUD-L-3730-06. Expert Report and Deposition Testimony
Confidential tax mediation. Expert Report and Presentation to IRS Appeals Panel
Confidential mutual fund industry arbitration. Expert Report, Deposition Testimony, and Testimony
Publications
Article
Valuing Natural Resources Investments
2018
Published in Contemporary and Emerging Issues on the Law of Damages and Valuation in International Investment Arbitration

Brattle Principals Richard Caldwell, Darrell Chodorow, and Florin Dorobantu have authored a chapter exploring the issues that arise in quantum analysis for natural resources investments matters for a new book.

Article
An Economic Evaluation of 'Funding' for Research Tax Credits
September 29, 2014
Published in Tax Notes
Article
The BP Royalty Trust: Warning of Impending Price Declines or a Failing Economic Indicator
September 2012
Darrell B. Chodorow and Philip Verleger
Published in Notes at the Margin
Report
The Economic Implications of the Texas Waiver on Petroleum Markets and the Broader Economy
June 2008
Darrell B. Chodorow and Philip Verleger
Published by The Brattle Group, Inc.
Presentation
Guest Lecturer in Regulation and Deregulation of U.S. Industries
February 2008
Presented at the University of Virginia School of Law
Presentation
Standards for Consulting Firms Working with Academic Experts
December 2004
Presented at Law Seminars International’s Expert Testimony in Litigation Conference, Reston, VA
Presentation
Stages of Power Plant Development – A Survey
August 2000
Presented at Electric Power Research Institute conference on “Boom-Bust” business cycles in the power industry, Cambridge, MA
Presentation
Distributed Generation: Threats and Opportunities
April 1998
Prepared for The Electricity Distribution Conference: Opportunities and Challenges for the Distribution Company in the New Millennium, Denver, CO
Presentation
What's in the Cards for Distribution Companies
April 1998
Presented to The Electricity Distribution Conference, Denver, CO
Article
The FERC, Stranded Cost Recovery, and Municipalization
1998
Gregory N. Basheda, Darrell B. Chodorow, Jason A. Hicks, Eric Hirst, James K. Mitchell, and Joseph B. Wharton
Published in Energy Law Journal
News & Events
April 09, 2019
Who's Who Legal Recognizes Brattle Principals for their Work in Arbitration

Who’s Who Legal has recognized eight Brattle principals as leading experts and one Brattle principal as a future leader in the arbitration field for 2019. 

March 22, 2019
Testimony and Analysis by Brattle Economists Secures Favorable Outcome for the Government of Canada in NAFTA Tribunal Decision on Bilcon Damages Claim

Expert testimony and analysis by Brattle Principal Darrell Chodorow, working with Senior Associate Sujay Dave and Research Analyst Kaitlyn Brady, was relied upon to set damages in a recently published NAFTA award by a Permanent Court of Arbitration Tribunal.

July 31, 2018
Who's Who Legal Identifies Brattle Economists as World's Leading Experts in Consulting

Who’s Who Legal recognized twelve Brattle economists as leading economic consulting experts in the areas of competition, construction, financial advisory and valuation, quantum of damages, and data and e-discovery.

June 04, 2018
Brattle Principals Examine Issues in Valuing Natural Resources Investments

Brattle Principals Richard Caldwell, Darrell Chodorow, and Florin Dorobantu have authored a chapter exploring the issues that arise in quantum analysis for natural resources investments matters for a new book, Contemporary and Emerging Issues on the Law of Damages and Valuation in International Investment Arbitration.

December 05, 2017
Six Brattle Principals Recognized as Top Expert Witnesses in Arbitration by Who's Who Legal

The Brattle Group is pleased to announce that Principals Richard Caldwell, Darrell Chodorow, Dan Harris, Carlos Lapuerta, Alexis Maniatis, and Stewart Myers have been named among the world’s top arbitration expert witnesses by Who’s Who Legal.

September 06, 2016
Economists Help Secure Favorable Outcome for Alaskan Refiners in Appellate Court Decision on Trans Alaska Pipeline Dispute

Oil expert Dr. Philip Verleger, working with Brattle Principal Darrell Chodorow, helped to obtain a favorable outcome for Alaskan refiners in an August 30, 2016 decision handed down by the United States Court of Appeals for the District of Columbia Circuit.

March 07, 2016
The Brattle Group Featured Among Leading International Arbitration Expert Witness Providers in Survey by Global Arbitration Review

The Brattle Group has been featured in a recent Global Arbitration Review (GAR) analysis of the most active firms for providing expert witness services in the field of international arbitration.

September 29, 2014
Darrell Chodorow and Shaun Ledgerwood Publish Article for Tax Notes on Funding for Research Tax Credits

Dr. Shaun Ledgerwood and Mr. Darrell Chodorow published an article in the September 2014 issue of Tax Notes in response to a recent summary judgment order in Geosyntec Consultants Inc. v. United States, presenting an alternative approach based on the economics of risk and reward allocation for contracts.

Personal Interests

Darrell lives in Maryland with his wife and two boys. As a native New Mexican, he enjoys anything having to do with the mountains and the outdoors. Whenever possible, he can be found on his bike.