Finance & Guarantee Company Pty Ltd v Auswild (Expert Evidence Ruling)

Finance & Guarantee Company Pty Ltd brought a claim against Auswild, raising complex issues concerning alleged breaches of agreement. The dispute was heard in the County Court of Victoria, where the admissibility of expert evidence was contested. The primary issue before the court was whether the expert's report and a joint report by two experts should be admitted, given concerns about the experts' independence. The concern arose from the experts' previous communications with the parties' lawyers and their reliance on incomplete historical accounting records.

The court addressed the issue by examining whether the experts had maintained their independence in preparing their reports, in light of their communications with the lawyers and the complex nature of the claims. The court found that while the experts had communicated extensively with the parties' lawyers, there was no evidence to suggest that these communications influenced the experts' opinions or that they failed to adhere to the expert's code of conduct. Furthermore, the court considered the nature of the claims, which necessitated reliance on incomplete records due to the complex and historical nature of the alleged breaches. The court held that the lack of independence was not established, and thus the expert reports were admissible under section 79 of the Evidence Act 2008 (Vic).

The court concluded that the expert reports and the joint report were admissible, as there was insufficient evidence to prove that the experts had lost their independence. The court emphasised the importance of maintaining independence in expert reports, particularly in complex cases where reliance on historical records is necessary. The decision underscores the requirement for experts to adhere to professional standards, even when faced with challenging circumstances in litigation. The court's ruling allowed the expert evidence to be presented, thereby advancing the proceedings towards resolution.