This case involves a manufacturer of industrial heating and cooling equipment used in the food processing industry. The manufacturer had been accused of supplying defective merchandise to a number of customers in violation of Federal Lemon Laws, causing clients to form a class action against the defendant firm. According to the plaintiffs, the defective equipment should have been under warranty when it began to fail, but that the defendant firm did not honor the terms of the warranty when customers began to report issues with the equipment. In order to evaluate the company’s obligations under the terms of their warranty agreement, an actuarial specialist was requested.
Question(s) For Expert Witness
- 1. Please explain why you're qualified to assist with this engagement.
- 2. Have you ever conducted studies pertaining to defective products?
Expert Witness Response E-010242
I am a fully credentialed casualty actuary and I have dealt with warranty claims a fair amount during my career at EY, Coopers & Lybrand, and Towers Watson both through audit and independent actuarial engagements. My warranty experience spans valuations for such diverse products as jet engines, meters and measurement devices, cell phones, replacement windows, automobiles and roofing products. I believe that, along with my co-authors, I have written the quintessential paper on warranty valuation as well. I note that I was the principal author of the paper as all the methodologies cited were based on my directives as well.
Expert Witness Response E-010241
In addition to being a fully credentialed actuary, I am one of the few actuaries in the country that specializes in warranties and extended warranties. I speak regularly at major industry conferences and have written several papers on the subject. I am seen as a subject matter expert by those in the industry. I’ve performed dozens of analysis related to warranties, extended warranties, and service contracts. My firm has performed analysis on industrial equipment, home warranties, and a diverse range of other products and services. We have also analyzed many unique products such as water tanks, ground cables, and heavy industrial equipment.