The Souris River Basin, which borders the Canadian provinces of Saskatchewan and Manitoba and North Dakota in the USA, had major flooding due to a June 2011 rainstorm. A rail company in the area was faced with business interruption, property damages and lost revenue from crops damaged in the flood. To substantiate a contingent business interruption claim, Dillon analyzed the cause and effect linkages of the storm to the affected areas.
The analysis included the following key issues:
- Which areas flooded by the rainstorm impacted the 2011 crop production?
- How much did pre-existing land conditions contribute to the 2011 crop production loss?
- Did the flooding destroy the crops already seeded or did the flooding reduce the quality of the crops harvested, thereby reducing the volumes that would normally have been shipped by rail?