Holes in Economic Damages Model Preclude Admission under FRE 702
Economic damages models fail for faulty assumptions based on unverified sales forecasts and growth expectations for distributor of surgical instruments.
Fisherman Surgical Instruments, LLC v. Tri-Anim Health Services, Inc.
Economic damages models fail for faulty assumptions based on unverified sales forecasts and growth expectations for distributor of surgical instruments.
In re Greater Southeast Community Hospital Corp. (I)
BV expert challenged under Daubert for reliance on third-party appraisals.
Expert’s Yardstick Method Excluded Under Daubert for Failing to Perform a Market Analysis in Connection With the Damage Computation
The U.S. District Court for Kansas excluded a financial expert’s damage computation under Daubert in this false advertising matter. The expert utilized the yardstick method and a one-to-one sales loss assumption. Because she failed to perform a market ana ...
Robert J. Pound v. Airosol Company, Inc.
The U.S. District Court for Kansas excluded a financial expert’s damage computation under Daubert in this false advertising matter. The expert utilized the yardstick method and a one-to-one sales loss assumption. Because she failed to perform a market ana ...
Trial Court Excludes Expert Testimony as Unreliable Under Daubert and Kumho
The issue in this litigation between two can manufacturers was the plaintiff's motion in limine to exclude the expert testimony of the defendant's CFO, John McGowan , as to damages for lost ...
CEO’s Complex Damage Model Excluded Under Fed. R. Evid. 701 and 702
The U.S. Court of Appeals for the 10th Circuit affirmed a district court’s decision excluding a lost profits estimate, computed using a regression analysis, under Fed. R. Evid. 702.
LifeWise Master Funding, et al. v. Telebank
The U.S. Court of Appeals for the Tenth Circuit affirmed a district court’s decision excluding a lost profits estimate, computed using a regression analysis, under Fed. R. Evid. 702.
Brennan's Inc. v. Dickie Brennan & Company, Inc.
The U.S. Court of Appeals for the 5th Circuit considered the admissibility of a financial expert and a damage award based on that expert’s testimony in this breach of contract matter involving restaurants having similar names.
Lost Profits Measured in Breach of Contract Action Involving Restaurants
The U.S. Court of Appeals for the 5th Circuit considered the admissibility of a financial expert and a damage award based on that expert’s testimony in this breach of contract matter involving restaurants having similar names.
Expert Challenged Under Old Frye Rule Rather Than Daubert
David Kline was the station manager of Reading Radio Inc., t/d/b/a WAGO Radio.
Children's Broadcasting Corporation v. The Walt Disney Company, et al. (III)
The U.S. Court of Appeals for the Eighth Circuit determined that a jury correctly determined the amount of Children’s Broadcasting’s damages in this breach of contract/misappropriation of a trade secret case.
Damages for Misappropriation of a Trade Secret Calculated Using the Discounted Cash Flow Method
The U.S. Court of Appeals for the Eighth Circuit determined that a jury correctly determined the amount of Children’s Broadcasting’s damages in this breach of contract/misappropriation of a trade secret case.
Reading Radio, Inc. v. Fink
Issues were whether the trial court erred in accepting a broker of media properties as an expert qualified to testify as an appraiser and denying motion in limine to exclude report and testi ...
Valuation 'Experts' Excluded as Unreliable Based on Numerous Errors in Methodology and Inability to Explain Conclusions
In this bankruptcy adversary proceeding, the trustees as plaintiffs sought to prove that the defendants—Bairnco Corp., Keene Corp., and the individual managers of the companies—had engaged in a series of fraudulent conveyances among subsidiaries to protect assets from the reach of asbestos claimants.
Lippe v. Bairnco Corp. (I)
In this bankruptcy adversary proceeding, the trustees as plaintiffs sought to prove that the defendants—Bairnco Corp., Keene Corp., and the individual managers of the companies—had engaged in a series of fraudulent conveyances among subsidiaries to protect assets from the reach of asbestos claimants.
Gary Lee Eckelkamp, et al. v. Dennis J. Beste, et al.
The U.S. Court of Appeals for the Eighth Circuit determined that an expert report indicating a greater valuation for ESOP purposes and showing that the directors of the ESOP were overcompensated in and of itself does not create a genuine issue of material ...
Court Judges Assessment of Risk Factors, Marketability Discount Evidence
The issue in this consolidated case was the fair market value of two minority nonvoting stock interests in Schwan's Sales Enterprises Inc. (SSE), one as of Dec. 31, 1992 (date of gift) and the other as of Dec. 31, 1994 (date of charitable contribution).
Okerlund v. United States (I)
The issue in this consolidated case was the fair market value of two minority nonvoting stock interests in Schwan's Sales Enterprises, Inc.
How should appraisers consider the law?
The following is a chapter excerpted from Michele Miles' book, The Business Appraiser and Litigation Support.** In this chapter she discusses how business appraisers can avoid running afoul of be ...
A Gross Result in the Gross Case Calls Into Question Circumstances in Which Tax Affecting Is Valid
Appraisers may soon have to defend their tax affecting in prior S corporation valuations as a result of Gross.
Daubert Issue Rears Its Ugly Head in Gross Case
George Hawkins wrote a guest abstract of this case in the January 2002 issue of Shannon Pratt's Business Valuation Update focusing on the tax affecting issues in the case.
Valuation Basics and Beyond: Tackling Areas of Controversy
Patrice Leigh Ferguson and John E. Camp. Family Law Quarterly , Vol. 35, No. 2, Summer 2001. This article, which is part of a family law symposium on valuation issues, is divided into several ...
Gross v. Commissioner (II)
Issues involved tax affecting of the discounted cash flows of the company and the size of the marketability discount.
0% Reduction for Tax Affecting Affirmed
The 6th Circuit affirmed the Tax Court’s valuation of gifted minority interests in a closely held S corporation.