--- title: "Construction Expert’s Building Budget Report Excluded" meta: "og:description": "The detailed building budget report of the construction expert was inadequate under Rule 26" "og:title": "Construction Expert’s Building Budget Report Excluded" author: "Expert Witness Profiler" description: "The detailed building budget report of the construction expert was inadequate under Rule 26" --- # Construction Expert’s Building Budget Report Excluded Posted on May 6, 2026 by Expert Witness Profiler Plaintiffs’ home was damaged by a fire on June 21, 2021. At the time of the fire, Plaintiffs had an insurance policy with State Farm. Plaintiffs alleged that Defendant State Farm failed to abide by the policy which allowed, at the insureds’ option, to either have the damage repaired or pay for the damage. Plaintiffs alleged that State Farm, without their consent issued payments to Plaintiffs and the mortgage holder rather than allowing Plaintiffs to decide whether to accept payment for the damage or repair the property. Defendant sought to exclude the testimony of [Pete Hennessey](https://expertwitnessprofiler.com/expert-witness/Peter-Hennessey/1574661), Plaintiffs’ expert witness pursuant to [Rule 26(a)(2)(B)](https://www.law.cornell.edu/rules/frcp/rule_26) of the Federal Rules of Civil Procedure, arguing that Hennessey’s report is insufficient. ## **Construction Expert Witness** [Peter Hennessey](https://expertwitnessprofiler.com/expert-witness/Peter-Hennessey/1574661) has been building homes for over 25 years. He has personally built over three hundred residential homes and is one of the most respected home builders in the industry. [Get the full story on challenges to Pete Hennessey’s expert opinions and testimony with an in-depth Challenge Study](https://expertwitnessprofiler.com/order/add?eId=1574661&pId=3). ## **Discussion by the Court** Hennessey stated that it is his opinion that it would be too risky and too expensive for the type of home to be rebuilt, to put it on top of the then existing foundation after the fire, which was not engineered to current standards. The basis of the facts or data considered by Hennessey included an examination of the site, obtaining estimates from subcontractors and preparing a detailed building budget report, which he set out in an exhibit attached to his report. However, the Court found that Hennessey’s report is entirely inadequate under Rule 26 standards. The most critical requirements of the Rule–the basis and reasons for the expert’s opinions and the data or other information considered–are totally lacking. In other words, the mere submission of subcontractor estimates told Defendant nothing about the substance of Hennessey’s calculation of the damages and estimated repair costs and left it open to unfair surprise. Although the surprise and prejudice could be cured by taking Hennessey’s deposition, the Court declined to require this of Defendant because doing so would shift the burden of disclosure onto Defendant whereas this burden is placed squarely on Plaintiffs by the Rule. Plaintiffs elected to designate Hennessey as an expert who may be used to provide evidence under [Federal Rule of Evidence 702](https://www.law.cornell.edu/rules/fre/rule_702#:~:text=Rule%20702%20sets%20forth%20the,is%20a%20relatively%20narrow%20inquiry.), [703](https://www.law.cornell.edu/rules/fre/rule_703#:~:text=Rule%20702%20sets%20forth%20the,is%20a%20relatively%20narrow%20inquiry.) or [705](https://www.law.cornell.edu/rules/fre/rule_705#:~:text=Rule%20702%20sets%20forth%20the,is%20a%20relatively%20narrow%20inquiry.), and then failed to provide the requisite information required by Rule 26(a)(2)(B). However, Plaintiffs were granted additional time to comply with Rule 26(a)(2)(B) by submitting an expert report prepared and signed by Hennessey in accordance with the requirements of the Rule, if they wished to offer Hennessey as an expert witness. ## **Held** The Court granted Defendant’s motion to strike the testimony of Pete Hennessey. ## **Key Takeaway** Plaintiffs have offered nothing to establish that the failure to comply with Rule 26(a)(2)(B) was substantially justified. The surprise and prejudice to Defendant as a result of the failure are significant and have not been cured to date through supplementation or otherwise. ## **Case Details:** --- ## **You Might Also Like** ![Industrial Hygiene Expert's Contaminated House Theory Admitted](https://ewp-blog.expertwitnessprofiler.org/wp-content/uploads/2026/05/blog-pic-640X480-2026-05-22T191941.479.jpg) [**Industrial Hygiene Expert’s Contaminated House Theory Admitted**](https://expertwitnessprofiler.com/construction-experts-building-budget-report-excluded/industrial-hygiene-experts-contaminated-house-theory-admitted)![Correctional Healthcare Expert Was Allowed to Opine on Drug Addiction](https://ewp-blog.expertwitnessprofiler.org/wp-content/uploads/2026/05/blog-pic-640X480-2026-05-22T174929.135.jpg) [**Correctional Healthcare Expert Was Allowed to Opine on Drug Addiction**](https://expertwitnessprofiler.com/construction-experts-building-budget-report-excluded/correctional-healthcare-expert-was-allowed-to-opine-on-drug-addiction)![Accident Reconstruction Expert Not Allowed to Opine on Statutory Violation](https://ewp-blog.expertwitnessprofiler.org/wp-content/uploads/2026/05/blog-pic-640X480-2026-05-22T142444.026.jpg) [**Accident Reconstruction Expert Not Allowed to Opine on Statutory Violation**](https://expertwitnessprofiler.com/construction-experts-building-budget-report-excluded/accident-reconstruction-expert-not-allowed-to-opine-on-statutory-violation)![Fire Investigation Expert Was Allowed to Opine on UL Listing](https://ewp-blog.expertwitnessprofiler.org/wp-content/uploads/2026/05/blog-pic-640X480-2026-05-21T150819.636.jpg) [**Fire Investigation Expert Was Allowed to Opine on UL Listing**](https://expertwitnessprofiler.com/construction-experts-building-budget-report-excluded/fire-investigation-expert-was-allowed-to-opine-on-ul-listing)![Pulmonary Medicine Expert's COPD Opinions Admitted](https://ewp-blog.expertwitnessprofiler.org/wp-content/uploads/2026/05/blog-pic-640X480-2026-05-20T195112.411.jpg) [**Pulmonary Medicine Expert’s COPD Opinions Admitted**](https://expertwitnessprofiler.com/construction-experts-building-budget-report-excluded/pulmonary-medicine-experts-copd-opinions-admitted)