Freres Lumber Co., Inc. - Page 23

                                                 - 23 -                                                    

            There is no evidence that petitioner had a bona fide interest in                               
            eliminating Bebout as a competitor.  These facts favor                                         
                  6.     Expert Opinions                                                                   
                  The parties relied on expert witnesses to prove the value of                             
            the covenants not to compete on March 1, 1988.  Expert witnesses'                              
            opinions can aid the Court in understanding an area requiring                                  
            specialized training, knowledge, or judgment.  However, as the                                 
            trier of fact, the Court is not bound by the experts' opinions.                                
            Helvering v. National Grocery Co., 304 U.S. 282, 295 (1938).  The                              
            opinions of expert witnesses are weighed according to their                                    
            qualifications and other relevant evidence.  Anderson v.                                       
            Commissioner, 250 F.2d 242, 249 (5th Cir. 1957), affg. in part                                 
            and remanding in part T.C. Memo. 1956-178; Johnson v.                                          
            Commissioner, 85 T.C. 469, 477 (1985).                                                         
                  The testimony of each expert was generally helpful to our                                
            overall understanding of the case.  However, we believe the                                    
            testimony of each expert was excessively favorable to the party                                
            which called the expert.                                                                       
                         a.    Petitioner's Expert                                                         
                  Petitioner relied on Clausen's expert testimony to value                                 
            the covenants not to compete, goodwill, and going-concern value.                               
            Clausen concluded that the three covenants were worth $1,650,000.                              
            Clausen used a method based on his estimate of how much                                        

Page:  Previous  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  Next

Last modified: May 25, 2011