Larry from Meridian. Received an unusual request this week. An attorney whose client is in a commercial lease dispute wants me to provide expert testimony about rate class errors on the property in question. The landlord allegedly passed through utility costs at incorrect rates and the tenant wants to recover overpayments. I have never been an expert witness before. Is this something AAUBA members do and what should I know?
First time getting an expert witness request — rate class testimony
Karl from Lincoln. I have been retained as an expert witness twice. It is a meaningful additional revenue stream and the skills are directly transferable from your normal audit work. The difference is that everything you produce is subject to adversarial scrutiny.
Karl, what does adversarial scrutiny mean practically?
Your methodology will be challenged by the opposing side's expert or attorney. Every assumption, every calculation, every tariff interpretation you make will be questioned. Your documentation needs to be more thorough than for a standard engagement because it may be deposed.
Dana from Sioux City. Also clarify with the attorney what your role is — consulting expert or testifying expert. Consulting experts help the attorney understand the issues but do not testify. Testifying experts go on the record and can be deposed. Very different in terms of preparation and liability.
The attorney said they would need me to testify at trial if the case does not settle.
Karl again. Get a clear engagement letter that covers your hourly rate, what happens if the case settles before trial, and who pays if the case drags on. Expert witness work is billed hourly, not on contingency, so your economics are very different from a standard audit.
Dana one more time. Connect with AAUBA about whether there are any guidelines on expert witness work. And make sure your professional liability coverage applies to expert witness testimony specifically — not all policies cover it.