Finding an expert
Originally prepared by Lucia Benabentos of the Cornell Law School Securities Law Clinic.
Experts can provide necessary information that supports claims made by either the claimant or the respondent. The decision to hire an expert depends on a number of factors:
1.The type of claim or defense being made
2.Cost of the expert as compared to the amount claimed as damages
3.The need to explain complex transactions
4.The need for expert testimony as compared to background information
Experts can offer their opinions on a variety of issues, ranging from disputed facts in a securities arbitration claim (i.e.: the management of the account, calculation of profits) to disputes issues of law.
Determination of whether a witness is an “expert” depends entirely on the arbitral panel. However, the standards used in litigation provide a helpful guide in determining whether the witness qualifies as an expert. Usually federal courts will consider a witness to be qualified as an expert if (1) the testimony is based upon sufficient facts or data, (2) the testimony is the product of reliable principles and methods, and (3) the witness has applied the principles and methods reliably to the facts of the case. Federal Rules of Evidence 702. Testimony by Experts. 28 U.S.C.A. §702. State courts offer different tests for determining whether a witness is an expert or not. However, arbitrators need not follow either federal or state standards in evaluating the expert.