Unpaid advice

A marine surveyor was approached by a reputable law firm to provide an expert written opinion on behalf of their client.

The surveyor was requested to provide an expert written opinion on the trade and market value of a yacht for an LMAA arbitration. They were also asked to comment on the other party’s expert advice as well as give oral evidence at the arbitration proceedings.

While the surveyor provided their services as agreed, the law firm’s client did not settle their invoice.

ITIC was contacted to assist in the debt collection process. ITIC initially attempted to collect the debt via discussions with the lawyers. When this approach did not succeed, separate lawyers were appointed on behalf of the member and they threatened to initiate arbitration proceedings against both the law firm and the client.

The member recovered US$45,000 from the debtors and ITIC covered the legal expenses of US$13,000.

Unfortunately, this situation is a regular occurrence. Experts need to be clear, on appointment, who will be paying them, and when. Don’t be lulled into a false sense of security that there is a reputable law firm involved, because if it is their less than reputable client who is responsible for your payment, you need to know before providing your pearls of wisdom.