Undermining expert evidence – taking shortcuts and being Facebook friends

Davis v Perry O'Brien Engineering Pty Ltd [2023] QSC 243

In this case, the methodology employed by a valuation expert, together with his personal friendship with one of the parties, was cause for concern for the court.

Background

The plaintiffs (the Sellers) owned an earthmoving and civil contracting business. In October 2015, the Sellers entered into a Share Sale Agreement (SSA) with the defendants (the Buyers).

Prior to settlement of the SSA, the defendants discovered that there were undisclosed liabilities of the company. The parties negotiated amendments to the sale arrangements, and the SSA was completed in December 2015. In February 2016, the Buyers realised that the business was in very a very poor financial state, and refused to pay further amounts owing under the SSA.