Survey of Daubert Challenges to Experts Suggests Red Flags to Avoid
In 2018, appraisers had the lowest exclusion rate among all types of financial experts facing a Daubert challenge, reveals the current edition of an annual PwC survey. The article also presents some tips on how to avoid a challenge.
Parties fight over notes-containing expert report: draft or final version?
Several sessions at the recent AICPA conference in Las Vegas highlighted the importance of expert discovery in litigation and noted that draft reports continue to be a hot-button issue.
IceMOS Tech. Corp. v. Omron Corp.
In contract dispute, court denies defendant’s Daubert motions, finding plaintiff’s experts are qualified based on extensive experience in relevant industry; experts could provide testimony relevant to surviving lost development support costs claim and their testimony is not unreliable as of now.
Plaintiff’s Projections Fail to Meet New York Test for Lost Profits or Lost Business Value
A breach of contract case in which the plaintiff asked for various types of economic damages is noteworthy for the court s extended discussion of what the plaintiff must show under New York law to make a case for lost profits. The court explained that the hurdle was particularly high for a new business or a business trying to break into a new market considering the company s lack of a financial track record. Damages must be ...
Pointers for expert witnesses from the AICPA FVS conference
BVWire sat through several excellent sessions involving valuations for litigation purposes at the 2019 AICPA Forensic and Valuation Services Conference in Las Vegas.
IceMOS Tech. Corp. v. Omron Corp.
In contract dispute, court says claims for lost profits and lost business value fail because, for both, plaintiff is unable to determine damages with reasonable certainty; relying solely on projections of future performance, without any proof of profit, is not enough under New York law.
Plaintiff’s Projections Fail to Meet New York Test for Lost Profits or Lost Business Value
A breach of contract case in which the plaintiff asked for various types of economic damages is noteworthy for the court s extended discussion of what the plaintiff must show under New York law to make a case for lost profits. The court explained that the hurdle was particularly high for a new business or a business trying to break into a new market considering the company s lack of a financial track record. Damages must be ...
How to succeed as a business valuation expert, from a Queen’s Counsel who’s seen the best—and the worst
One of the most engaging—and humorous—presentations from the recent ICAEW Valuation Community Annual Conference at Moorgate Place came from Augustus Ullstein QC.
Helen Ziegler Benjamin v. Island Management
In a family dispute featuring related closely held companies and claims of breach of fiduciary duty and mismanagement, court, based on financial testimony from plaintiffs’ expert, orders inspection of defendant company’s records, including general ledger, fee agreements, and executive compensation.
Financial Expert Testimony Persuades Court to Order Inspection of Company Records
In a family dispute featuring related closely held companies and claims of breach of fiduciary duty and mismanagement, court, based on financial testimony from plaintiffs’ expert, orders inspection of defendant company’s records, including general ledger, fee agreements, and executive compensation.
BVU News and Trends October 2019
A monthly roundup of key developments of interest to business valuation experts.
BV expert shows how to produce a viable valuation with little financial data available
BV expertise matters, as a recent Florida divorce case shows in which the parties’ experts faced the challenge of valuing a company that once operated abroad but was sold a decade before the divorce trial.
Some courts prefer back-of-the-envelope calculations, expert says
Although some appraisers are categorically opposed to calculation engagements, it is not unusual for courts to want a back-of-the-envelope calculation, a veteran BV expert says.
Details of the CUT method used in the Amazon case
Last week’s BVWire covered the 9th Circuit decision in the Amazon case that affirmed the U.S. Tax Court’s 2017 decision in favor of the company in a transfer pricing case.
Calculation engagements receive mixed reactions from courts
If the appraisal profession is conflicted over the validity of calculation engagements, so are courts, as a brief review of court decisions on the BVLaw platform shows.
Tax Court adopts tax-affected valuation of PTE without overturning Gross
For years, the appraisal community has wondered when the U.S. Tax Court will recognize the need for tax affecting when valuing pass-through entities (PTE) and how the court will square its decision with precedent, i.e., the Gross case in which the Tax Court rejected the taxpayer’s tax-affected valuation.
Linde v. Linde
Appellate court upholds trial court’s finding that majority shareholder breached fiduciary duty to minority shareholder and buyout order; trial court performed careful valuation analysis finding defense expert’s asset-based approach was “simply an improper method of valuation in the present case.”
Court Says Asset Approach ‘Is Simply an Improper Method’ in Present Appraisal Proceeding
Appellate court upholds trial court’s finding that majority shareholder breached fiduciary duty to minority shareholder and buyout order; trial court performed careful valuation analysis finding defense expert’s asset-based approach was “simply an improper method of valuation in the present case.”
Tax Court’s Amazon valuation ruling stands up to 9th Circuit scrutiny
The 9th Circuit recently affirmed the U.S. Tax Court’s 2017 decision in favor of Amazon in this key transfer pricing case, finding the governing regulations limited the definition of “intangible” to independently transferrable assets.
County of Maricopa v. Office Depot Inc.
In denying defendant’s pretrial motion to exclude plaintiff’s expert testimony under Daubert and Rule 37, which specifies sanctions for failure to make disclosures or cooperate in discovery, court finds note-containing version of expert report is a draft not subject to discovery under Rule 26.
Expert Report Containing Notes Qualifies as Draft Not Subject to Discovery
In denying defendant’s pretrial motion to exclude plaintiff’s expert testimony under Daubert and Rule 37, which specifies sanctions for failure to make disclosures or cooperate in discovery, court finds note-containing version of expert report is a draft not subject to discovery under Rule 26.
Cline v. Sunoco
In class-certification context, court says plaintiff’s damages expert meets Rule 702/Daubert requirements as they apply in early stage of litigation; expert is qualified, and, damages model, even if not fully developed, provides a sufficiently reliable way to calculate damages on classwide basis.
Expert Testimony Offered at Class-Certification Stage Survives Daubert Challenge
In class-certification context, court says plaintiff’s damages expert meets Rule 702/Daubert requirements as they apply in early stage of litigation; expert is qualified, and, damages model, even if not fully developed, provides a sufficiently reliable way to calculate damages on classwide basis.
The main reason experts get KO’d by Daubert
Lack of reliability continues to be the main reason for financial expert witness exclusions under Daubert, according to the PwC survey, “Daubert Challenges to Financial Experts.”
In court, you must appeal to the jury
Do you think you can win over a jury with just your credentials and technical knowledge?