The outcome of a multi-million dollar lawsuit for breach of contract may be now in question due to an expert witness being erroneously admitted under the federal lay witness rule, according to a recent report by The National Law Journal. The decision made by the federal appeals court could effectively undo the jury’s previous award for damages.
The U.S. Court of Appeals for the Tenth Circuit pointed out that the jury’s verdict for the damages sustained by A-1 Organics, a recycling company, in its legal battle against Heartland, pivoted heavily on the testimony of the former’s Chief Financial Officer (CFO). This individual, the court stated, had been incorrectly classified as a lay witness under Rule 701, rather than being correctly identified as an expert under Rule 702.
Furthermore, the Appeals court noted that the witness’ damages projections were based not on common knowledge or experience, which is the norm for lay witnesses, but on his professional expertise as a certified public accountant; thus reinforcing the court’s argument for his reclassification as an expert witness.