How should you evaluate the qualifications of an expert you may be considering?
Obviously, one’s reputation and experience, particularly as it applies to the actual issues in dispute, are paramount. An expert must be perceived as independent and credible when explaining the methodology and assumptions used to arrive at his conclusions. Those assumptions must not be deemed speculative. Additionally, the expert must be articulate and confident in his or her testimony so that a layperson or judge can understand the essence of what is often a complicated and obscure situation. The expert must not get flustered when confronted during cross-examination by an antagonistic attorney.
What are the risks of using an expert in a dispute?
Nothing could be worse than having an expert who seems less than credible — either because he or she ventures outside the area of expertise, is unprepared or otherwise confuses rather than enlightens the case. How an expert chooses to handle or refute the opinions and positions given by an expert on the other side can discredit his or her own testimony if not done prudently.
What are the key factors in having your expert and attorney on the same page?
The expert’s testimony, if done properly, should be seen as impartial and well-substantiated. However, the attorney and expert should and can carefully map out the parameters of the case well before that pivotal moment — first by getting correct and adequate documentation through discovery, investigation, reconstruction and other evidence-gathering techniques, then by organizing and validating the adequacy and strength of the evidence, and finally calculating and justifying the financial consequences of the dispute.
Although financial experts must remain independent, the adversarial environment within the courtroom often makes it appear as if the experts are competing with each other. Those weighing the facts will evaluate the opinions of experts on both sides before arriving at their own determination of any final award. To be truly effective, an expert witness must be as convincing as possible within the larger context of maintaining his or her integrity and credibility before a court of law.
Richard M. Squar, CPA, MBA-Tax, CVA, ABV, Certified in Financial Forensics, is the tax and litigation support director of Glenn M. Gelman & Associates, Certified Public Accountants and Business Consultants. Reach him at (714) 667-2600 or [email protected] or visit www.gmgcpa.com.