CVA Litigation Support and Expert Testimony Flashcards

A CVA testifying as an expert witness must comply with Federal Rule of Civil Procedure 26(a)(2)(B), which requires disclosure of:

Answer: A written report containing all opinions, the basis and reasons, data relied upon, and compensation arrangements

FRCP 26(a)(2)(B) mandates a comprehensive expert report disclosing all opinions, supporting rationale, data, prior testimony, and compensation to enable opposing parties to prepare.

During cross-examination, opposing counsel challenges a CVA's use of a 35% marketability discount in a shareholder oppression case. The best defense is to:

Answer: Cite studies, transaction data, and case-specific factors that support the magnitude of the discount

Expert opinions withstand cross-examination when they are grounded in empirical studies, comparable data, and sound reasoning tied to case-specific facts.

In a shareholder oppression dispute, many state courts apply which standard of value when determining the fair value of a dissenting shareholder's interest?

Answer: Fair value (as defined by state statute), which typically excludes minority and marketability discounts

Most state appraisal and oppression statutes define fair value as a proportionate share of enterprise value without minority or marketability discounts, protecting minority shareholders.

When opposing experts in the same litigation reach materially different value conclusions, the most common causes include:

Answer: Different standards of value, different discount rates, and different normalization adjustments

Divergent conclusions typically stem from methodological differences in discount rates, growth assumptions, normalization adjustments, and the applicable standard of value.

A CVA serving as a court-appointed neutral expert (Rule 706 expert) has a primary duty to:

Answer: The court, providing an objective and independent opinion rather than advocating for either party

A Rule 706 court-appointed expert serves the court, not either party, and must provide an independent, unbiased opinion to assist the trier of fact.

In a divorce proceeding, the valuation date for a business interest is most often:

Answer: Determined by state law or the court, commonly the date of separation, filing, or trial

Valuation dates in divorce vary by jurisdiction — some states use date of separation, others use filing date, and others use the trial date, making state law review critical.