Opinion
No. CIV 98-1426 LH/LCS-ACE.
January 5, 2001.
ORDER
THIS MATTER came before the Court for hearing on December 20, 2000, on Defendants Motion to Exclude Expert Testimony of Plaintiffs Damages Experts, Alistair M. Preston, Brian E. Rowe, and Allen M. Parkman (Docket No. 69), filed October 15, 1999. The Court, having considered the pleadings submitted by the parties, the arguments of counsel, and otherwise being fully advised, concludes that the motion shall be granted in part and denied in part. The Court finds that Alistair M. Prestons testimony is based on sufficient facts and is the product of reliable methods. Defendant does not object to the sufficiency of data or methodology used by Dr. Preston to calculate the gross profit margin of Mr. Lucketts business from March 1993 to March 1995. Accordingly, Dr. Preston will be allowed to testify as an expert pursuant to Fed.R.Evid. 702.
The Court finds that Brian E. Rowes testimony is not the product of a reliable method applied reliably to sufficient facts. Mr. Rowes calculation of damages is based upon an assumed gross profit margin for which there is no rational basis. Mr. Rowe simply concludes that the gross profit margin for the consigned collection should be higher than Mr. Lucketts average gross profit margin because of the uniqueness of the collection. Mr. Rowe arbitrarily calculates the gross profit margin for the collection from the three highest profit periods of Mr. Lucketts business between March 1993 and March 1995. Therefore, the Court will not permit Mr. Rowe to testify as an expert pursuant to Fed.R.Evid. 702.
The Court finds that Allen M. Parkmans testimony is based on sufficient facts and is the product of reliable methods. Dr. Parkmans calculations of damages are essentially subtraction problems which he performed using the total auction price, Defendants estimates of the value of the collection, the amounts bidders had budgeted for the auction, a summary comparing the high estimates and sale results from 27 Americana single-owner sales and sequences from 1990 to 1997, and the bought-in rate (percentage unsold) for the Important Americana Sale in 1997. Because his testimony will assist the trier of fact to determine a fact in issue, Dr. Parkman will be allowed to testify as an expert pursuant to Fed.R.Evid. 702.
IT IS, THEREFORE, ORDERED that Defendants Motion to Exclude Expert Testimony of Plaintiffs Damages Experts, Alistair M. Preston, Brian E. Rowe, and Allen M. Parkman (Docket No. 69), filed October 15, 1999, is granted in part and denied in part.