ITIC warns on the potential cost of being an expert

International Transport Intermediaries Club (ITIC) has warned that the role of expert witness should not be undertaken lightly and that all professionals acting in this capacity should be aware that they could face legal action for negligence.

In the latest issue of its online newsletter, The Wire, ITIC cites a case involving an explosion on board a yacht at a marina which resulted in an insurance claim being made against the owner. An expert appointed by the insurers to investigate the cause of the loss concluded that the explosion and fire were the result of a deliberate act by the owner.

The insurers rejected the claim for a number of reasons, and the owner challenged the insurer’s decision in the local court, which found in favour of the insurers because the owner had been working on the vessel without the requisite authority. Therefore, irrespective of the allegation of arson, the policy did not have to respond to the loss.

The owner then claimed €650,000 in damages for defamation in respect of the allegations of arson raised in the expert’s report. Proceedings were issued against the insurers and the expert.

The insurers wanted the expert to pay the costs of the defence of the defamation claim, based on the fact that it was the allegation in the expert’s report that had given rise to the issue. ITIC, however, persuaded the insurers that they should support their expert, especially since they were, in part, relying on the report to reject the claim. ITIC said that, if it turned out that the report was negligent, the insurers could make a claim against the expert which would fall under their ITIC cover but, until then, the insurers should defend the expert. The insurers accepted that position and the claim was ultimately rejected by the courts.

ITIC says, “In addition to potential liabilities, even an ‘innocent’ expert can face substantial legal costs dealing with a claim. At best, only a proportion of these costs will ever be recovered.”

ITIC recently held an expert witness panel discussion at its London offices where the subjects under discussion included the liability of the expert, the incorporation of standard terms and conditions, and effective report writing. The latest edition of The Wire includes articles on these and other issues, as well as a list of ten golden rules of loss prevention for expert witnesses. These include not allowing the desire to help a client blind one to the evidence, not allowing oneself to be bullied, challenging inadequate or misleading instructions, not accepting instructions if it means an inability to remain independent, and not straying outside areas of expertise. “To err is human,” concludes ITIC, “ - the answer is insurance.”

ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com


For more information:
Charlotte Kirk
ITIC
Tel. +44 (0)20 7338 0150
Fax. +44 (0)20 7338 0151
charlotte.kirk@thomasmiller.com

Bureau Veritas pursues external growth strategy with the acquisition of TMC Marine

Neuilly-sur-Seine, France, May 04, 2016 – Bureau Veritas has reinforced its position in value-added marine services with the acquisition of leading international consultancy TMC Marine Ltd.

TMC has been providing pre and post casualty advice and support to the marine industry since 1979. The business focuses on marine claims and accident investigations, salvage and wreck removal consultancy and marine expert witness services for a client base that spans P&I clubs, law firms, marine insurers, salvage companies and ship owners.

Headquartered in London, TMC has a network of offices in the US, China, Singapore and Australia. It employs over 50 people and generated revenues of EUR 8.5 million in 2015.

“Our Marine & Offshore business, the historical activity of Bureau Veritas, is one of our eight key growth initiatives to 2020. As such, it is evolving rapidly. We are diversifying our service portfolio and developing our technological leadership in order to meet all our clients’ expectations in risk management. TMC is a recognized brand that enables the Group to enhance its offering to the marine insurance consultancy market, thereby expanding the services that we already provide in offshore to the maritime market,” commented Didier Michaud-Daniel, CEO of Bureau Veritas.

 “We are very happy to be joining the expanding Marine & Offshore division of Bureau Veritas, a leading service provider to the international marine industry. This is a strategic alliance that will provide TMC with technical synergies and greatly enhance the services we can offer to new and existing clients while at the same time continuing our plan of further geographic expansion,” added Tony Bowman, Chairman of TMC.

 http://tmcmarine.com/

About Bureau Veritas

Bureau Veritas is a world leader in laboratory testing, inspection and certification services. Created in 1828, the Group has 66,000 employees in 1,400 offices and laboratories around the globe. Bureau Veritas helps its clients improve their performance by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility.

Bureau Veritas is listed on Euronext Paris and belongs to the Next 20 index.

Compartment A, ISIN code FR 0006174348, stock symbol: BVI.
For more information, visit www.bureauveritas.com

Contacts
Analysts/Investors: Mark Reinhard: +33 (0)1 55 24 77 80 finance.investors@bureauveritas.com	Press: Cathy Pianon: +33 (0)7 71 43 12 96 cathy.pianon@bureauveritas.com Véronique Gielec: +33 (0)1 55 24 76 01 veronique.gielec@bureauveritas.com

Expert advice

News that the Supreme Court in London has abolished immunity for expert witnesses will come as a blow to many us who had imagined that we knew our stuff.

For many years, experts in shipping were considered to be chaps from out of town, with slides. They were paid well, too, in the mistaken belief that free advice is worth what you pay for it. Removing the immunity traditionally enjoyed by such people could prove to be the thin end of the wedge.

The fear of being proved wrong has traditionally been enough to deter all but the most confident of experts. But now that the bar has been raised by the courts, expert witnesses will have to have the sort of confidence displayed by the American physicist Henry Rowland, who has been described as “the father of modern spectroscopy”. (‘Spectroscopy’ may or may not be a word, but certainly shouldn’t be).

While testifying as an expert witness in one particular trial, Rowland was asked during cross-examination what qualified him to serve in such capacity. "I am," he said, "the greatest living expert on the subject under discussion."

Later, a friend expressed surprise at this remark, and asked Rowland what had persuaded him to make such an extravagant claim. "Well,” he said, “what did you expect me to say? I was under oath.”

chris@merlinco.com