Due Diligence on a Claim

In carrying out due diligence on the claim, Teras will carefully assess all aspects of the claim which bear on the financial risks it is being asked to assume or to share. These factors include:

  • The prospects of success of the claim;
  • The jurisdiction of the case or seat of arbitration;
  • The substantive law of the dispute;
  • The amount of the claim in comparison with the likely costs and risks of pursuing the claim.
  • The likely timing to resolution of the claim;
  • Teras does not expect that the claim will carry no risk, but will be looking to ensure that it has the right balance of risk versus reward and that the costs are not disproportionate to the likely recovery;
  • Possible counterclaims;
  • The risks associated with enforcing and obtaining payment under an award; and
  • Most importantly, the capacity of the defendant to satisfy any award made against it.