In a recent case decided by the federal district court (Indiana), the Court excluded a valuation expert citing the failure of his report to meet the requirements of Federal Rule of Civil Procedure 26(a)2(B) and the Daubert tests.
The court also noted that, notwithstanding the expert’s outstanding qualifications, he did not have private company valuation experience. Also supporting the court’s ruling was the expert’s reliance upon counsel’s selected evidence rather than the broader scope of important evidence that would likely have impacted his opinions. Although the expert acknowledged that independent verification of client and attorney representations was a customary practice for appraisers, he admitted that his work in the case did not include verification of certain significant client representations. In it’s ruling the court also referenced “numerous other deficiencies” in the expert’s work.
Business appraisers serving as expert witnesses need to prepare in numerous dimensions. To help business appraisers further their training in litigation, The Institute of Business Appraisers is conducting a workshop titled 7100 Business Valuator Accredited for Litigation on Monday – Friday, November 9-13. The development and instructional team for this workshop is lead by IBA member Michael Kaplan, CPA/ABV, CVA, CFFA.
Business Appraisers interesting in learning more about IBA’s Expert Witness Training Workshop and the Business Valuator Accredited for Litigation (BVAL) designation should review the IBA’s BVAL certification requirements or contact IBA’s Headquarters at 800-299-4130.
Cite: MGD International vs. Australian Gold, Inc. 2009 WL 1916728 (S.D. Ind.) (June 29, 2009)