Lack of BV credential triggers a Daubert challenge

BVWireIssue #253-2
October 11, 2023

expert witness, business valuation, expert testimony, admissibility

In a bankruptcy case in South Carolina, the defendants moved to exclude evidence of an expert, which included his exhibits and valuation report. Citing no education nor certification on business valuation nor membership in any BV organizations, the defendants asserted the expert was not qualified to give an expert opinion on business valuation under Rule 702 (the federal rule of evidence regarding expert witnesses).

The expert had been a CPA since 1985, and his license was in good standing. He also had a B.S. in accounting and was a member of the AICPA. His CV, which was provided to the defendants, “provides information regarding his educational history, professional experience (including over 400 business valuations), professional designation as a CPA, and presentations.”

Not excluded: “Courts have … agreed that any gaps in an expert’s knowledge generally go to the weight of the witness’s testimony, not its admissibility,” the court wrote. Based on evidence from the expert’s various disclosures about his background, the court determined that he was qualified as an expert witness by his skill, knowledge, experience, training, and/or education.

There were other issues in this case, where both sides sought to exclude each other’s valuation experts. Both motions were granted in part and denied in part. The case is Vieira v. Think Tank Logistics, LLC (In re Levesque), 2023 Bankr. LEXIS 2113; 653 B.R. 127, and a case analysis and full court opinion are on the BVLaw platform.

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