Expert witnesses, who appear before the courts in relation to insurance claims, have been put on notice that they could face liability in the future.
An article by Stuff detailed the warning by a High Court judge to all expert witnesses involved in Afghan refugees Sayad and Mastoreh Sadat’s case against the Earthquake Commission (EQC) and Tower Insurance. The Sadats had sought a rebuild of their Christchurch home, claiming damage in the 2010 earthquake. However, evidence revealed the property had already cracked cladding and foundations in 2008. They were also found to be uninsured in the 2011 quake after Tower cancelled their policy, leaving them to lose their court battle.
Justice Gerald Nation reportedly awarded EQC $178,000 in costs against the Sadats and their earthquake claim advocate Claims Resolution Service Ltd. A cost agreement has already been reached with Tower.
Meanwhile, the publication reported the plaintiffs, alongside expert witnesses geotechnical engineer Owen Thompson and structure engineer Dr. Zheng Ping Wu, served documents with new evidence just before the lawsuit hearing date, delaying the case. EQC had asked for costs to be awarded against both – placing a suggestion of $15,000 from each. Judge Nation however, decided against it because he did not want to deter expert witness, who might fear the personal cost of a lost trial, which was particularly important with Christchurch earthquake cases.
However, he reportedly noted that his judgment “should put expert witnesses, and counsel, on notice of the particular risks” they might face if they “effectively dump substantial new evidence” close to a trial.
Judge Nation added that, while the Sadats were not to be penalised for going through with their lawsuit, his findings were “a demonstration of the risks that claimants face in pursuing a claim where a successful result is far from assured.”
