Cross Examination: Be Very Wary of Experts

A family of two brothers and a father failed to pay millions they owed, claiming that they had no money. One of the family’s creditors believed that they had artificially reduced their reported income to avoid making any payments of their debts. We were retained by this lender to opine on the amount of compensation that should have been earned by the family from their real estate development business.

Testifying Experts – Size Matters

Almost all of our business at Rosenfarb LLC is generated from litigators – our client base. In addition to all of their other skills, good litigators are very good actors and like all good actors they can play any role. They are sufficiently capable, nimble, quick and smart enough to learn about any subject matter.

Winning Decision for Rosenfarb’s Clients

High praise given to Sam Rosenfarb by HON. IRA GAMMERMAN (Ret.) Justice of the Supreme Court, New York:
“Rosenfarb, who had many degrees and who was in my opinion an expert in both giving testimony on the issue of what would be appropriate compensation and on many other things. He’s an expert appraiser and he submitted a report and testified at some length regarding the value of the services that the three defendants had rendered or were rendering….

Weight v. Admissibility

ALLIED ERECTING AND DISMANTLING CO., INC., Plaintiff,
v.
UNITED STATES STEEL CORPORTION, Defendant.
Case No. 4:12-cv-1390.
United States District Court, N.D. Ohio, Eastern Division.
April 6, 2015.
This case addresses the testimony of several experts. For purposes of this article, we only discuss the court’s decision regarding the damages expert’s testimony.

‘Reasonably Equivalent Value’ Analysis Is Not a Dollars-and-Cents Issue

Mercury Companies, Inc. v. FNF Security Acquisition, Inc. (In re Mercury Companies, Inc.), 2014 Bank. LEXIS 1230 (March 31, 2014)
What does the Bankruptcy Court look for when it assesses “reasonably equivalent value”? A recent decision describes in technical detail the discounted cash flow analyses the parties’ experts performed and the limitations of their calculations.

No Case Without Damages Expert

Antioch Co. Litig. Trust v. Morgan, 2014 U.S. Dist. LEXIS 47740 (April 7, 2014)
A recent bankruptcy-related case illustrates how an experienced valuator was precluded from testifying because he had agreed to be a mere conduit for information that the client wanted to place in evidence. If the court’s exclusion did not sting enough,

Court Extols Expert’s Valuation Opinion

Matter of Adelstein v. Finest Food Distributing Co., 2014 N.Y. App. Div. LEXIS 2542 (April 16, 2014); Matter of Adelstein v. Finest Food Distributing Co., 2011 N.Y. LEXIS 5956 (Nov. 3, 2011)
A New York appeals court affirmed a stock valuation in the context of an oppressed shareholder suit. The underlying 2011 trial court decision provides insight into the factors courts consider when assessing the qualification and performance of appraisers.

Delaware Chancery Adopts ‘Unfamiliar’ Valuation Methodology

Laidler v. Hesco Bastion Environmental, Inc., 2014 Del. Ch. LEXIS 75 (May 12, 2014)
The Delaware Court of Chancery regularly uses the discounted cash flow (DCF) method in statutory appraisal actions, but in a recent case that was not feasible. The case involved a group of related companies that operated in the flood barrier industry.

U.S. Court of Appeals Holds Government Was Not Required to Establish Intervening Cause in Lost Profits Case

NYCAL Offshore Development Corporation v. United States, 743 F.3d 837 (2014)
United States Court of Appeals, Federal Circuit: Decided February 20, 2014
In 1982, the federal government developed a program of selling oil and gas leases to oil companies and issued leases for oil fields off the Southern California coast.