Forensic accountants as expert witnesses

Division 23.2 of the Federal Court Rules (2011) governs expert witnesses and their reports in court. Paragraphs (a) to (d) of section 23.15 were included because the court is required to ensure that cases are ‘brought to resolution quickly, inexpensively and as efficiently as possible’ (Federal Court of Australia 2016). I learnt about how expensive litigation is throughout my law degree, and saw it firsthand when my parents went to court for their divorce settlement. I recognise that the longer it takes for an expert witness to give oral evidence, the higher the court costs and legal fees that will be incurred by the parties to the proceeding.

(Masini Law Group, P.C. 2016)

Expert conferral enables identification of the real issues in dispute, saving time and costs by focusing the hearing on those issues (de Villiers 2015, 93). In addition, it helps to ensure that expert witnesses comply with their duty to the court and do not advocate for their client, as any bias opinion can be challenged by the other party’s expert (de Villiers 2015, 93).

(Clear Retirement Group 2014)

When our company engages a forensic accounting expert witness, they may be required to give evidence in court. If the court orders the expert to confer with another expert pursuant to the Federal Court Rules (2011) section 23(a), they may be ordered to produce a document that identifies where their opinions agree and differ under section 23(b). Given my legal background, I would advise that they understand and comply with Practice Note CM 7. Guideline 3.1 outlines that a witness cannot be given, or accept, instructions not to reach agreement when they meet with another party’s expert (Federal Court of Australia 2013).

Relevant Links
If you would like to read the Federal Court Rules or download a copy, you can do so here:
https://www.legislation.gov.au/Details/F2016C00359.

If you would like to read Practice Note CM 7, you can do so here: http://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/cm7

References
Clear Retirement Group. 2014. “Tale of 2 Businessmen – The High Court of Waiting to Save for Retirement.” Image. Accessed May 25, 2016. http://www.clearretirementgroup.com/clearretirementsense/2014/5/22/c596pzkxqnvm9o4yi4i0z51gx5w1hb.

de Villiers, Bertus. 2015. “Conferral of experts and concurrent evidence: What do experts think?” Law Society of NSW Journal 16: 92-93. Accessed May 16, 2016. http://search.informit.com.au.ezp01.library.qut.edu.au/documentSummary;dn=537379021502219;res=IELAPA.

Federal Court of Australia. “Conference of Experts.” Accessed May 16, 2016. http://www.fedcourt.gov.au/case-management-services/ADR/conference-of-experts.

Federal Court of Australia. 2013. “Practice Note CM 7.” Accessed May 16, 2016. http://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/cm7.

Federal Court Rules (Cth). 2011. Accessed May 16, 2016. https://www.legislation.gov.au/Details/F2016C00359.

Masini Law Group, P.C. “New York Bankruptcy Attorney Explains How Bankruptcy Exemptions are Performed.” Image. Accessed May 25, 2016. https://www.masinilaw.com/new-york-bankruptcy-attorney-explains-how-bankruptcy-exemptions-are-performed/.