Dispute Accounting for Solicitors & Law Firms

CPR Part 35 & FPR Part 25 Compliance

A dispute accountant instructed as an expert witness owes their primary duty to the court under CPR Part 35, not to the instructing solicitor or their client. This applies whether appointed jointly or by one party. Independence is the foundation of credible dispute accounting expert evidence.

Under CPR Part 35 and Practice Direction 35, the expert's overriding duty is to help the court on matters within their expertise. This duty overrides any obligation to the person instructing or paying them. The expert must provide opinions that are independent, objective, and unbiased, and must state the substance of all material instructions.

The leading authority remains *National Justice Compania Naviera SA v Prudential Assurance Co Ltd* ("The Ikarian Reefer") [1993] 2 Lloyd's Rep 68, which established that expert evidence should be independent, objective, and unbiased. Experts must not assume the role of advocate for their instructing party.

Where the court directs a Single Joint Expert (SJE) under CPR 35.7, both parties instruct the same expert jointly. The expert's duty remains to the court. Party-Appointed Experts (PAEs) are instructed by one side; their duty is identical, independence is not diminished by single-party instruction.

Family proceedings requiring accounting expert evidence are governed by FPR Part 25, which mirrors CPR Part 35 in imposing an overriding duty to the court. Dispute accountants instructed in matrimonial financial remedy proceedings provide business valuations, hidden income analysis, and Form E review under the same principles of independence and objectivity. Experts in family proceedings must comply with FPR PD 25A and may be directed to meet and produce a joint statement where both parties have instructed experts on the same issue.

SJE vs Party-Appointed

**Single Joint Expert (SJE):** Appointed under CPR 35.7 when the court directs both parties to instruct the same expert jointly. Cost is typically shared equally. The SJE produces one report for the court. Either party may ask questions of the expert under CPR 35.6. SJE appointment is common in share valuation, matrimonial business valuation, and lower-value commercial disputes where a single independent view is preferred.

**Party-Appointed Expert (PAE):** Instructed by one party without joint appointment. The PAE owes the same duty to the court as an SJE. Each party may instruct their own expert; the court may then direct expert meetings and joint statements under CPR 35.12 to narrow issues. PAE appointment is standard in High Court commercial fraud, complex loss quantification, and cases where parties require independent advocacy through expert evidence.

The choice between SJE and PAE depends on case complexity, cost, court direction, and whether parties can agree on a joint expert. A preliminary review with a dispute accountant can help solicitors assess which approach is appropriate.