- 49 - or the ESOP had the right to control Interstate as to the valuation process or result. There are cases in which the statements of an expert have been found to be admissions. E.g., Collins v. Wayne Corp., 621 F.2d 777, 781-782 (5th Cir. 1980) (deposition testimony of expert hired to investigate and report on an accident was an admission); Mauldin v. Commissioner, 60 T.C. 749 (1973) (appraisal report prepared by Library of Congress Evaluation Committee at direction of the Librarian of Congress admitted as an admission against Government's interest); Transamerica Corp. v. United States, 15 Cl. Ct. 420, 471-472 (1988), affd. 902 F.2d 1540 (Fed. Cir. 1990). We believe, however, that the facts of those cases are distinguishable from the facts of the instant case because, in the instant case, a valuation report was performed by an independent appraiser who was retained by someone (the ESOP committee) other than the party (HCA) against whom it is being offered. We have found no case, and respondent has cited none, in which the statements contained in a valuation report prepared by an independent appraiser retained by a wholly owned subsidiary have been found to be an admission by the parent. Moreover, we are not convinced that an independent appraiser can serve as an agent of the client and also faithfully carry out the responsibilities and duties of an appraiser. It seems to us that, if an appraiser was an agent of the client, the appraiser would not be independent because the appraiser would owe an undivided loyalty to the client. The expert appraiser, however,Page: Previous 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Next
Last modified: May 25, 2011