- Expert determinations can occur in many different situations.
- Some contracts require parties to refer a dispute to expert determination before litigation is commenced.
- Many expert determinations are agreed upon by parties without being required to do so by underlying contracts. In some circumstances, a court may refer a dispute to expert determination or appraisal.
Prior to appointment, the parties will be required to agree a number of matters, each of which must be reflected in the expert determination agreement which the parties and the expert will be required to execute including:
- the issues or questions that the expert is required to consider;
- whether the determination is to be binding on the parties;
- the timing of submissions and whether they are to be in writing, oral or a combination;
- whether the determination is to be confidential;
- security for the payment of the expert’s fees; and
- the timing of implementation of the determination.