The argument is between Davis and Higuchi about compensation over lost property.
I chose answer (E) because to me it seemed that Davis gives a general rule by saying "the harm to the victim is directly proportional to the pertinent value"; whereas Higuchi takes two victims - one that recovers their property in 1 year and the other in 2 years - and hence supporting a case-by-case scenario and not applying one rule to all victims.
So Davis and Higuchi disagree with each other about (E), the compensation owed to victims should be determined on a case-by-case basis rather than by some general rule.
The correct answer (D) said Some victims are owed increased compensation because of the greater amount of time they are deprived of the use of their property.