Financial Expert Witness Communication: A Practical Guide to Reporting and Testimony

CHAPTER 6 Federal Rules of Evidence for the Financial Expert Witness

EVIDENTIARY RULES ON EXPERT WITNESS OPINIONS AND TESTIMONY

The Federal Rules of Evidence (FRE), ARTICLE VII, OPINIONS AND EXPERT TESTIMONY, Rules 702, 703, 704, 705, and 706 describe the requirements for financial expert testimony.¹ These rules are defined as follows:

Rule 702. Testimony by Expert Witnesses

A witness who is qualified as an expert by knowledge, skill, experience, training, or education may testify in the form of an opinion or otherwise if: (a) the expert’s scientific, technical, or other specialized knowledge will help the trier of fact to understand the evidence or to determine a fact in issue; (b) the testimony is based on sufficient facts or data; (c) the testimony is the product of reliable principles and methods; and (d) the expert has reliably applied the principles and methods to the facts of the case.

Rule 703. Bases of an Expert’s Opinion Testimony

An expert may base an opinion on facts or data in the case that the expert has been made aware of or personally observed. If experts in the particular field would reasonably rely on those kinds of facts or data in forming an opinion on the subject, they need not be admissible for the opinion to be admitted. But if the facts or data would otherwise be inadmissible, the proponent of the opinion may disclose them to the jury only if their probative ...