- 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,
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