And more case analysis added to BVLaw


Here's a sampling of some of the other decisions we've covered where financial analysis methods were recently challenged at the appellate level.


Fractus, S.A. v. Samsung Electronics, Co., 2012 U.S. Dist. LEXIS 90398 (June 28, 2012)

Court affirms $23 million patent infringement award based on apportionment analysis of the plaintiff’s expert, which relied on internal as well as external documentation of value of patented technology without improperly invoking entire market value of infringing product.


Experts: James Nawrocki


Judge:  Davis


State/Jurisdiction: Texas/ federal


Court: U.S. district court


Type of case: IP


SIC code: 4813 Telephone Communications, Except Radiotelephone (except resellers)


Bakst v. United States of America (In re: Kane & Kane), 2012 Bankr. LEXIS 3223 (July16, 2012)

In fraudulent conveyance suit, bankruptcy court admits expert’s testimony on reasonable compensation as it relates to reasonably equivalent value for the debtor law firm’s payment of its partners’ income taxes, but strikes insolvency expert’s opinion for applying GAAP standard of valuing contingent claims instead of applicable legal standard.


Experts: Robert Zucker (plaintiff/trustee); James Reda and William Michaelson (defendant/government)


Judge:  Kimball


State/Jurisdiction:  federal


Court: Bankruptcy court


Type of case:  bankruptcy


SIC code: 8111 Legal Services


Basile Baumann Prost Cole & Assoc. v. BBP & Assoc. LLC, 2012 U.S. Dist. LEXIS 103915 (July 25, 2012)


Court strikes expert’s “lost asset value” theory of  damages for trademark infringement because it relied entirely on the plaintiff’s allegations that it lost all of its goodwill value due to the defendants’ actions, without adequate proof.


Experts: Frank Walker (plaintiff)


Judge:  Quarles Jr.


State/Jurisdiction: federal/Maryland


Court: U.S. District Court


Type of case:  IP


SIC code: 6552 Land Subdividers and Developers, Except Cemeteries


WesternGeco LLC v. ION Geophysical Corp., 2012 U.S. Dist. LEXIS 98230 (July 16, 2012)


Court excludes expert’s reasonable royalty analysis because it assumed a “financially catastrophic” deal for the licensor, one that would have eliminated all profits and revenues.


Experts: Raymond Sims (plaintiff)


Judge:  Ellison


State/Jurisdiction: federal/Texas


Court: U.S. Dist. Court


Type of case:  IP


SIC code: 1382 Oil and Gas Field Exploration Services



Natchez Regional Medical Center v. Quorum Health Resources, LLC, 2012 U.S. Dist. LEXIS 99479 (July 18, 2012)

Court affirms that Daubert does not require an expert to be certified in accounting or another specialty, so long as he/she possesses the requisite knowledge and experience; and it admits testimony of hospital turnaround and restructuring expert in case alleging fraudulent accounting practices by management company.


Experts: Scott Phillips (plaintiff) and J.W. Tillet (defendant)


Judge:  Bramlette


State/Jurisdiction: Mississippi/federal


Court: U.S. Dist. Court


Type of case:  contract


SIC code: 8062 General Medical and Surgical Hospitals



TXCO Resources, Inc. v. Peregrine Petroleum, LLC (In re: TXCO Resources, Inc., 2012 Bankr. LEXIS 3425 (July 26, 2012)

Court denies lost profits damages for trade secret misappropriation in oil and gas case, but calculates $15.8 million reasonable royalty award based on prior “licenses” (farmout and joint exploration agreements) that were particular to the plaintiff and customary in the industry.


Experts: Paul Szatkowski (plaintiff)


Judge:  King


State/Jurisdiction:  federal/Texas


Court: Bankruptcy


Type of case:  IP


SIC code: 1382 Oil and Gas Field Exploration Services



U.S. Securities and Exchange Commission v. St. Anselm Exploration Co., 2012 U.S. Dist. LEXIS 100124 (July 19, 2012)


Court denies “dueling” Daubert motion in securities fraud case concerning an oil and gas company, finding the experts on both sides relied on relevant facts and data and generally accepted methodology, including the comparable sales approach that used BLM data regarding sales of geothermal leases.


Experts: Steven Schuster and Leslie O’Conner (plaintiff)


Judge: Blackburn


State/Jurisdiction:  federal/Colorado


Court: U.S. district court


Type of case:  securities


SIC code: 1382 Oil and Gas Field Exploration Services