- 39 -
show the legitimacy of R.K. and to provide Darrow’s opinion as to
the value of R.K., if that project had not been cut off in its
infancy. Darrow had been director of a primate center for Litton
Bionetics under contract to NIH in 1978, when he was approached
by American Cyanamid Co. (hereinafter sometimes referred to as
American Cyanamid) to review plans for R.K. In August 1978,
Darrow began to work for American Cyanamid. He was hired to
direct American Cyanamid’s primate breeding and research work
that was planned to be carried out on the Island. He continued
to work for American Cyanamid in this role until March 1982. The
Court was satisfied that Darrow’s prior experience in responsible
positions in creating or supervising primate research operations,
and his lengthy involvement in R.K. planning as an American
Cyanamid employee, qualified him as an expert witness in the
offered matters. Darrow valued R.K. at $19,200,000, entirely on
the basis of an analysis of the cage fees that Laney was likely
to receive from the operations of R.K. To us, Darrow’s analysis
emphasizes the substantial differences between R.K. and Laney’s
established trade or business as a consultant.
Also, Laney kept separate books and records for his
consulting services expenditures and his R.K. expenditures; he
generally deducted his consulting services expenditures currently
but capitalized his R.K. expenditures. Laney testified that he
Page: Previous 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 NextLast modified: May 25, 2011