Critiquing an Expert Report: The Final Step – Consult a CBV

You have now completed your review of the expert report on damages by considering:

1. The author’s credentials and qualifications;
2. Any scope limitations in the report;
3. The underlying assumptions;
4. The nature of the conclusion as an opinion or calculation;
5. The damages approach;
6. The damages period;
7. Whether future damages has been appropriately discounted;
8. The contract; and
9. Mitigation.

The final step involves consulting an independent Chartered Business Valuator (CBV). In addition to providing a second opinion, consulting a CBV can provide the following benefits:

1. Receive an independent and objective viewpoint;
2. Specialized knowledge and experience in damage quantification and business valuation;
3. Verbal communication of issues and concerns with the plaintiff’s expert report;
4. Help ascertain the defendant’s potential financial exposure;
5. Assistance with examinations for discovery of the plaintiff;
6. Assistance with quantification of damages in a counterclaim or crossclaim, if applicable;
7. Assistance with cross examination of the opposing expert;
8. The provision of independent expert testimony (e.g. at mediation, arbitration or court) if needed;
9. Preparation of a Limited Critique Report for use at trial, mediation, arbitration or settlement discussions; and
10. Preparation of an independent Expert Report for use at trial, mediation, arbitration or settlement discussions.

According to the Canadian Institute of Chartered Business Valuators (CICBV), a Limited Critique Report is defined as "any written communication containing comments on a report containing a conclusion as to the value of shares, assets or an interest in a business, or a conclusion as to the quantum of financial gain/loss, or any conclusion of a financial nature in the context of litigation or a dispute, that does not itself contain a valuation conclusion or conclusion as to the quantum of financial gain/loss, or any conclusion of a financial nature in the context of litigation or dispute." [1]

 

A Limited Critique Report can be very helpful for identifying weaknesses in the plaintiff’s damages claim, which can help facilitate settlement discussions.  However, if an independent assessment of damages is required, the CBV will have to provide an independent Expert Report.  An Expert Report is defined by the CICBV as "any written communication other than a valuation report, containing a conclusion as to the quantum of financial gain/loss, or any conclusion of a financial nature in the context of litigation or a dispute, prepared by an expert acting independently". [2]

 

If you are acting for the defendant in a breach of contract or other legal dispute and have just been provided with the plaintiff’s expert report on damages, contact us at www.vspltd.ca.  We can help by providing some preliminary comments, a Limited Critique Report, an independent Expert Report or any of the other benefits outlined above.

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1.  CICBV Professional Standard No. 410, 420 and 430 – Limited Critique Reports.
2.  CICBV Professional Standard No. 310, 320 and 330 – Expert Reports.