Distribution Co’s legal team hired MDD to review Supermarket Co’s claim, assess its reasonableness, and propose alternative calculations where needed.
Our review noted that part of Supermarket Co’s claim included a period where local regulations mandated closing their stores, meaning they would not have been able to sell products even if their stores were open. The inclusion of these days overstated the claim.
In addition, we identified discrepancies in the underlying data Supermarket Co relied on to calculate the increased third-party logistics costs. Specifically, we found that the cost data from Supermarket Co’s central accounts did not reconcile with the data from the distribution centres. This issue suggested the data used by Supermarket Co was not reliable and further undermined the claim.