- 28 - conceded that his method could not account for this situation because he only analyzed available timber volume and not the prices of timber. The Walkers competed with the three mills that petitioner owned. Hungate ignored this fact and only measured the cash-flow of the two mills that petitioner bought from the Walkers. Hungate testified that petitioner and the Walkers bought timber from the Forest Service, BLM, and the State of Oregon. Hungate ignored timber sales from BLM and the State of Oregon. Hungate evaluated the volume or market share of timber. To select a dollar value, he assumed that the available volume of timber had a direct relationship with cash-flow. He assumed that each percentage increase of available volume of timber resulted in about the same percentage increase in cash-flow. He did not support that assumption. Hungate testified that the Court should use caution in relying on his method. He admitted that it is very difficult to analyze the direct relationship between the volume of timber and cash-flow because many factors affect cash- flow. However, he did not explain those factors. We also disagree with Hungate's conclusion that Bebout's covenant not to compete had no value. We do not find Hungate's estimates of the value of the covenants not to compete to be very convincing.Page: Previous 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Next
Last modified: May 25, 2011