Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Journal of Business Valuation and Economic Loss Analysis

Editor-in-Chief: Ewing, Bradley T. / Hoffman, Jim

1 Issue per year

CiteScore 2017: 0.32

SCImago Journal Rank (SJR) 2017: 0.160
Source Normalized Impact per Paper (SNIP) 2017: 0.622

See all formats and pricing
More options …

Are The Courts Unintentionally Promoting Unethical Behavior In Business Valuators?

Richard R. Conn
Published Online: 2015-07-30 | DOI: https://doi.org/10.1515/jbvela-2015-0001


The expert business valuator’s primary responsibility is to assist the Court in the understanding of complex financial and economic issues impacting the valuation of an asset or damages claim. The Courts expect valuation opinions that are unbiased and impartial. But empowering the advocate-lawyers to select and engage those valuators misaligns the reward system. The reward the expert valuator seeks is the engagement itself – being appointed to the case. The current system of lawyer-engaged experts acts as an impediment towards absolute impartiality. Court-appointed experts may be the easiest means of eliminating role-conflict and realigning the reward system so that the expert valuator is focused upon the primary goal of serving the Court’s needs.

Keywords: business valuation; ethics; valuator independence; duty of expert witness; limited bias; court-appointed experts

Bibliography and References

  • Alberta, Govt. of. Alberta Rules of Court. 2010. Provincial Rules of Court AR124/2010 includes AR 41/2014, Edmonton: Alberta Queen’s Printer.

  • American Institute of Certified Public Accountants. 2014. AICPA Code of Professional Conduct. Professional Rules of Conduct, American Institute of Certified Public Accountants Inc.

  • Appraisal Standards Board. 2008. Uniform Standards of Professional Appraisal Practice. Washington: The Appraisal Foundation.Google Scholar

  • Ariely, Dan. “Why We Lie.” Wall Street Journal, May 26, 2012.

  • Bell, Robert, and Caroline Abela. n.d. “A Lawyer’s Duty to the Court.” The Advocates’ Society. Accessed March 2 2015. http://www.advocates.ca/

  • Canadian Bar Association. 2009. Code of Professional Conduct. Professional Standards, Ottawa: Canadian Bar Association.Google Scholar

  • Canadian Institute of Chartered Business Valuators. 2012. Code of Ethics. Professional Code of Conduct, Toronto: Canadian Institute of Chartered Business Valuators.Google Scholar

  • Canadian Institute of Chartered Business Valuators. 2014. Factum of the Intervenor, Moore v. Getahun. Toronto: CICBV.Google Scholar

  • Delaware Judiciary. 2010. The Delaware Lawyers’ Rules of Professional Conduct. Professional Codes of Conduct, Delaware State Courts.Google Scholar

  • DiGabriele, J. A. 2008. “The Adversarial Bias of Accounting Experts in Financial Litigation: An Empirical Analysis of Compromised Objectivity in Accounting Expert Testimony.” Journal of Accounting, Ethics & Public Policy 8 (1):1–22.Google Scholar

  • DiGabriele, J. A. 2011. “An Observation in the Transparent Objectivity of Forensic Accounting Expert Witnesses.” Journal of Forensic & Investigative Accounting 3 (2):390–416.Google Scholar

  • Fay, Rebecca, and Norma, R. Feb 2015. Montague. “I’m Not Biased, Am I?” Journal of Accountancy 26–31.Google Scholar

  • Federal Rules of Evidence. 2013. For Use of The Committee on the Judiciary House of Representatives, Washington: U.S. Government Printing Office.

  • Field, Richard H. G., and Robert J. House. 1995. Human Behaviour in Organizations. Scarborough: Prentice-Hall Canada Inc.Google Scholar

  • Gilcreast, Aaron. 2012. Uncovering blind spots in deal valuations. PwC Promotional Material, Price Waterhouse Coopers LLP.

  • Hon Coulter A. Osborne, Q. C. 2007. Civil Justice Reform Project: Summary of Findings & Recommendations. Reform Recommendations, Toronto: Attorney General of Ontario.Google Scholar

  • International Valuation Standards Council. 2011. Code of Ethical Principles for Professional Valuers. Professional Code of Conduct, London: International Valuation Standards Council.Google Scholar

  • Kalish, Donald, Richard Montague, and Gary Mar. 1980. LOGIC Techniques of Formal Reasoning, 2nd ed. New York: Harcourt Brace Jovanovich.Google Scholar

  • Kerr, Steven. 1995. “On the folly of rewarding A while hoping for B (20th year revision).” Academy of Management Executive 9 (1):7–14.Google Scholar

  • Krafka, Carol, Meghan A. Dunn, Molly, T. Johnson, Joe S. Cecil, and Dean Miletich. 2002. “Judge and Attorney Experiences, Practices, and Concerns Regarding Expert Testimony in Federal Civil Trials.” Psychology, Public Policy, and Law (American Psychological Association, Inc.) 8 (3):309–32.

  • Lawler, Edward E. 1993. Effective Reward Systems: Strategy, Diagnosis, Design, and Change. Los Angeles: Center for Effective Organizations – Marshall School of Business USC.Google Scholar

  • Lobo, Prem, and Peter J. Henein. 2011. Credibility Under Scrutiny: A Research Study of the Weight Placed on Expert Valuation and Damages Evidence in Canadian Court Judgements. Research Initiative, Toronto: Canadian Institute of Chartered Business Valuators.Google Scholar

  • Loomer, Suzanne. “Independence And The Financial Expert.” Family Lawyer Magazine, December 2011.

  • Mazar, Nina, On Amir, and Dan Ariely. 2008. “The Dishonesty of Honest People: A Theory of Self-Concept Maintenance.” Journal of Marketing Research 633–44.CrossrefGoogle Scholar

  • Moore v. Getahun. ONSC 237 (Ontario Superior Court of Justice, January 14, 2014).

  • “R.R.O. 1990, Regulation 194.” Rules of Civil Procedure (Amended to O. Reg. 259/14). Toronto: Service Ontario, Dec 11, 2014.

  • Sward, Ellen E. 1989. “Values, Ideology, and the Evolution of the Adversay System.” Indiana Law Journal 64 (2):301–55.Google Scholar

  • The Advocates’ Society. 2014. Principles Governing Communications with Testifying Experts. Codification of Professional Responsibilities, Toronto: The Advocates’ Society.Google Scholar

About the article

Published Online: 2015-07-30

Published in Print: 2017-05-24

Citation Information: Journal of Business Valuation and Economic Loss Analysis, Volume 12, Issue 1, Pages 145–182, ISSN (Online) 1932-9156, ISSN (Print) 2194-5861, DOI: https://doi.org/10.1515/jbvela-2015-0001.

Export Citation

© 2017 Walter de Gruyter GmbH, Berlin/Boston.Get Permission

Comments (0)

Please log in or register to comment.
Log in