Your client has had a dispute with the bank over a collateralised business loan which they claim to have paid in full but the bank claims still has monies outstanding and is holding on to the collateral. After winning their initial suit and the bank's appeal, the case reached the supreme court, as the bank still did not release the collateral - the company's significant real estate assets. The supreme court ordered a retrial, deciding to rule on the procedure and not on the substance of the case. As the process had already taken a decade, the company sued the Hellenic Republic (HR) in the European Court of Human Rights (ECHR), who ruled in the company's favour, opining that excessive delays in the justice system constitute a violation of the right to a fair trial.
The ECHR ordered the HR to pay the company pecuniary damages, and appointed you with the task of calculating the amount of damages.
As a result of the proceedings the company, which is primarily export oriented, has been listed on credit watch databases and has been unable to gain export credits. Furthermore, the liens on the collateral have inhibited them from selling their real property even though it has in the meantime risen six fold in value.
Required: Calculate, with supporting evidence, the amount of pecuniary damages the court should award to the company. You may assume a cost of equity of 11%.
Attach Company balance sheet prior to the claim, cashflows prior to litigation.
Attachment:- Pre-claim balance sheet.rar