Failure to Test Causation Narrative Clouds Analysis of Lost Profits
Court strikes parts of lost profits opinion, finding expert adopted plaintiff’s causation theory, “pinning the company’s overall financial performance” on defendants’ allegedly defective crane without offering supporting data or methodology to test theory ...
Admissibility Does Not Depend on Personal Knowledge of Facts
Appeals court says expert’s lack of personal knowledge of information undergirding lost profits calculation does not disqualify his opinion, as long as he can show experts in his field would rely on this information and it is otherwise reasonably reliable ...
Court Endorses Before and After Method for Lost Profits
In Daubert case, court accepts before and after method for lost profits and diminution of value calculation but excludes parts of expert testimony because they merely restated company assumptions and conclusions without undergoing testing from the expert.
Am. Aerial Servs. v. Terex United States
Court strikes parts of lost profits opinion, finding expert adopted plaintiff’s causation theory, “pinning the company’s overall financial performance” on defendants’ allegedly defective crane without offering supporting data or methodology to test theory ...
High Company-Specific Risk Adjustment Distorts Valuation
In a buyout case, the court finds that, in reselling company, defendants undervalued rollover equity interest by double counting risks specific to the company in order to avoid triggering windfall provision in prior sales agreement favorable to plaintiff.
Advanced Drainage Sys. v. Quality Culvert, Inc.
In Daubert case, court accepts before and after method for lost profits and diminution of value calculation but excludes parts of expert testimony because they merely restated company assumptions and conclusions without undergoing testing from the expert.
Averaging Multiple Appraisals Yields Most Reliable FMV
In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.
Am. Eagle Waste Indust., LLC v. St. Louis County
Appeals court says expert’s lack of personal knowledge of information undergirding lost profits calculation does not disqualify his opinion, as long as he can show experts in his field would rely on this information and it is otherwise reasonably reliable ...
Charron v. Sallyport Global Holdings, Inc.
In a buyout case, the court finds that, in reselling company, defendants undervalued rollover equity interest by double counting risks specific to the company in order to avoid triggering windfall provision in prior sales agreement favorable to plaintiff.
Devoid of Goodwill, Corporation Escapes Income Tax Liability
Tax Court says taxpayer’s company owned no corporate goodwill and had no right to taxpayer’s personal goodwill and, therefore, was not liable under IRC Sect. 311(b)(1); the taxpayer, in turn, was not liable for gifting corporate goodwill to his sons.
Chancery’s Reversal on Damages Opinion Bodes Well for Plaintiff
In a major pharmaceutical case, on remand Delaware Chancery finds plaintiff proved it had a reasonable expectation of profits at the time of breach; court accepts plaintiff expert’s damages model, but orders adjustments, particularly to sales quantity.
Failure to Specify Offset Value Does Not Preclude Expert’s Admissibility
In contract dispute, court finds defendant expert’s testimony regarding offset value of new equipment plaintiff installed in reliance on contract is relevant under Daubert even though expert fails to state precise monetary benefit to plaintiff.
Perez v. Bruister (I)
In ESOP case, court finds trustees unreasonably relied on appraiser’s valuations and overpaid for company stock; court credits parties’ three experts equally and arrives at fair market value by averaging results from experts’ multiple calculations.
A Time Limit on Use of Destruction of Business Method?
Court finds damages expert’s use of destruction of business method is not improper despite a four-year gap between the alleged offending conduct and the company’s demise, and it does not render his calculation inadmissible under Daubert.
PharmAthene, Inc. v. SIGA Technologies, Inc.
In a major pharmaceutical case, on remand Delaware Chancery finds plaintiff proved it had a reasonable expectation of profits at the time of breach; court accepts plaintiff expert’s damages model, but orders adjustments, particularly to sales quantity.
Dominion Liquid Technologies, LLC v. GT Beverage Co., LLC
In contract dispute, court finds defendant expert’s testimony regarding offset value of new equipment plaintiff installed in reliance on contract is relevant under Daubert even though expert fails to state precise monetary benefit to plaintiff.
MacDermid Printing Solutions, Inc. v Cortron Corp.
Court finds damages expert’s use of destruction of business method is not improper despite a four-year gap between the alleged offending conduct and the company’s demise, and it does not render his calculation inadmissible under Daubert.
Expert’s Unconventional Method to Forecast Lost Profits Satisfies Daubert
Federal district court finds plaintiff’s expert’s Crystal Ball and Holt Winters methodology to project lost profits admissible under Daubert; method proved reasonable when subsequently tested with regression analysis tool.