Actuarial Science Experts Opine on Alleged Breach of Warranty Terms by Heavy Equipment Manufacturer

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.