Court Determines Scope of Expert Testimony in Farm Sale Transaction

June 27, 2009 | Erin Herbold

In this case, a realty company sued a buyer of farm property, for allegedly violating a “Buyer Agency Agreement” and failing to pay the realty company a commission (the buyer actually used another realtor to complete the sale). At trial, the seller designated an expert witness to testify to the standard of conduct for real estate agents in Iowa. The expert was expected to testify that the buyer did not have a valid agreement with the realty company for the sale of the property because the real estate agent failed to comply with the Iowa Code or the standards of the National Association of Realtors and the Des Moines Area Association of Realtors. The realty company moved to limit the expert’s testimony, but the trial court overruled the motion and allowed the expert’s testimony concerning the validity of the agreement and whether it comported with Iowa real estate standards. 

The realty company appealed. The Iowa Rules of Evidence direct that “the expert’s direct testimony at trial may not be inconsistent with or go beyond the fair scope of the expert’s testimony in the discovery proceedings.” However, the rules do allow an expert to testify as to facts or mental impressions and opinions they derived from their investigation and upon which they have not been interrogated.  The appellate court concluded that the realty company had adequate notice of the expert’s opinions on the validity of the “Buyer Agency Agreement” before the trial. It was apparent to the court that the expert testified as to the facts of the case and did not go beyond the scope of what was expected. West Realty, Inc. v. Fox, No. 9-227/08-0922 (Iowa Ct. App., Jun. 17, 2009).