Litigation
9/4/2008 11:15:31 AM EST
Defendant’s CEO a Valuation 'Expert,' Not Fact Witness
Publisher, BVR Legal Business Valuation Resources, LLC
The Seventh Circuit recently affirmed the exclusion of testimony from an officer of the defendant in the case, because the defendant attempted to offer his opinion as a fact witness. The court said his valuation was not based on “particularized knowledge” gained by working at the company, but on his “extensive experience purchasing and selling the type of goods at issue.” Since the court said the CEO was truly presenting an expert opinion, and he wasn’t disclosed by the deadline, the trial court was correct in excluding him. Compania v. Titan International, 533 F.3d 555 (7th Cir. Ill. 2008).
“[Former Titan CEO] Taylor purported to value the collateral by applying his generalized knowledge of the worldwide tire market, gained through his experience in the worldwide tire business, to a proffered list of specific items owned by a third party.” Noting that Taylor had no personal knowledge of the items, his position was “not akin to the owner of a small business testifying to the value of that business.” The court said that since his testimony was based on his “special training or experience,” his testimony was that of an expert.
We included this update in a recent issue of BVR Legal Wire, a free, twice-monthly email service for attorneys interested in legal developments relating to commercial and business disputes where the value of companies or business assets are a critical element. To learn more or sign up for BVR Legal Wire, go to http://www.bvrlegal.com/. Create an account or login to post comments.