An Expert Horror Story Van Oord UK Limited and SICIM Roadbridge Limited v Allseas UK Limited [2015] EWHC3074 (TCC)
In the recent case of Van Oord UK Limited and SICIM Roadbridge Limited v Allseas UK Limited [2015] EWHC 3074 (TCC), the English Technology and Construction Court issued a judgment, in which it was wholly damning of one side's quantum expert. The judgment is a wake-up call for disputes lawyers as to the importance of selecting, instructing and supervising expert witnesses, and the need to stress-test their reports before submission.
The facts
The case concerned the laying of a thirty-inch gas export pipeline relating to the Shetland Gas Project in Scotland (the Project). When complete, the Project will process gas from the Laggan and Tormore fields located 125km northwest of the Shetland Islands.
The Project Owner is Total E&P UK Limited (Total). Total engaged Allseas UK Limited (AUK) as Main Contractor to carry out all onshore and offshore works including the laying of a pipeline to take the gas from the northwest coast round to Friths Voe on the eastern coast. AUK engaged Van Oord, and SICIM Roadbridge (collectively, OSR) to perform a range of construction and engineering services including flooding, cleaning, gauging and testing of the pipelines and other offshore works.
The Project fell into delay and OSR made claims against AUK for:
Disruption and prolongation costs arising from unforeseen ground conditions;
Disruption and prolongation costs arising out of an alleged failure by AUK to obtain permission for temporary crossings; and
Additional supervision costs resulting from an alleged delay by AUK in supplying the 55 tonne beach valve and cabin.
OSR's quantum expert valued OSR's claims at GBP10 million.
The Court's views on the expert reports
In considering OSR's quantum expert's evidence Mr Justice Coulson did not hold back in his criticism.
Coulson J stated:
"[the expert's] abrupt departure from the witness box at a short break for the transcribers, never to return, was an indication of the stress he was under. But I regret to say that I came to the conclusion that his evidence was entirely worthless