Business Valuation Expert Witness Reports and Discovery - A Jurisdictional Analysis

Business Valuation Expert Witness Reports and Discovery - A Jurisdictional Analysis
SHARE:

Generally, business valuation experts should provide a written report explaining their opinion of the value of the asset or business interest that is the subject of the litigation. However, the procedural rules that govern the disclosure of expert witnesses and requirements relating to written appraisal reports differ drastically between jurisdictions. These rules should be reviewed to ensure that all the required information is covered, and expert is timely disclosed so that he or she may testify at trial.

Several discovery devices are available to the parties in a civil or criminal proceeding. A discovery device is a procedure employed by a party, before trial, to require the adverse party to disclose information that is essential for the preparation of the requesting party’s case.  The most used discovery devices in the context of an asset or business valuation are:

  • Disclosure and written report requirements
  • Interrogatories
  • Depositions

Below is a summary of discovery rules by jurisdiction. This summary is provided for elaboration purposes only and is not updated regularly. Parties should consult an attorney for the specifics of the jurisdiction in which the case is being litigated:

Jurisdiction Written Expert Report Required Interrogatories to expert allowed? Deposition of expert allowed?
Federal Yes Yes Yes
Alabama No Yes With Court Order Only
Alaska Yes Yes Yes
Arizona No Yes Yes
Arkansas No Yes With Court Order Only
California On-demand Yes Yes
Colorado Yes Yes Yes
Connecticut Summary Yes Yes
Delaware No Yes With Court Order Only
District of Columbia No Yes With Court Order Only
Florida No Yes Yes
Georgia No Yes Yes
Guam No Yes With Court Order Only
Hawaii No Yes Yes
Idaho No Yes Yes
Illinois If Interrogatory Served Yes Yes
Indiana No Yes With Court Order Only
Iowa If Requested Yes Yes
Kansas Summary Yes Yes
Kentucky No Yes Must serve interrogatories first
Louisiana No Yes Yes
Maine No Yes With Court Order Only
Maryland If Interrogatories Served Yes Yes
Massachusetts No Yes With Court Order Only
Michigan No Yes Yes
Minnesota No Yes With Court Order Only
Mississippi No Yes With Court Order Only
Missouri No Yes Yes
Montana No Yes With Court Order Only
Nebraska No Yes With Court Order Only
Nevada Yes Yes Yes
New Hampshire Yes Yes Yes
New Jersey If interrogatory served Yes Yes
New Mexico No Yes With Court Order Only
New York No Yes With Court Order Only
North Carolina No Yes With Court Order Only
North Dakota No Yes Yes
Ohio No Yes Must Show Exceptional Circumstances
Oklahoma No Yes Must Serve Interrogatories First
Oregon No No No
Pennsylvania If Interrogatory served, discretionary with answering party Yes With Court Order Only
Puerto Rico No Yes With Court Order Only
Rhode Island No Yes Must serve interrogatories first
South Carolina No Yes Yes
South Dakota No Yes With Court Order Only
Tennessee No Yes Yes
Texas If Requested No Yes
Utah Yes Yes Yes
Vermont No Yes Yes
Virginia No Yes Yes
Virgin Island Yes Yes Yes
Washington No Yes Yes
West Virginia No Yes Yes
Wisconsin No Yes Yes
Wyoming No Yes Yes

Only Six State Jurisdictions i.e. Alaska, Colorado, Nevada, New Hampshire, Utah, and the Virgin Islands, required a written expert report under rules like Federal Rules (specifically FRCP 26(a)(2).

California requires a written report if demand is made.

Iowa and Texas require a written report if requested in discovery.

Illinois, Maryland, and New Jersey require a written report if an interrogatory is directed to a party who will call the witness.

Louisiana requires a written report upon contradictory motion of any party or on the Court’s motion.

Pennsylvania provides that the party answering an interrogatory may provide the expert’s report in response or have the expert answer the interrogatory.

The remaining jurisdictions do not require a written report or summary by an expert witness to be provided to the other parties.

Hassan Sultan, CPA, CVA AdministratorKeymaster
Hassan Sultan has over 20 years of experience in the areas of taxation, business valuation, and non-profit financial management. His scope includes income tax preparation for individuals and businesses of all types, trusts, and outsourced CFO services to non-profit organizations. He also provides business valuation and litigation support. Hassan earned a bachelor’s degree in management from the University of Florida and an MBA from Carnegie Mellon University.
follow me
SHARE:
54321
(0 votes. Average 0 of 5)
Leave a reply

Your email address will not be published.