- 152 - imbalance. As we understand the premise for the approach actually used, it contains the assumption that the imbalance would vary as between the parties as it did between the 1990 and 1991 years. From reviewing the facts of these cases and some of the experts’ reports, it is our understanding that independent (arm’s length) parties who enter into reciprocal exchanges of services do so because of perceived benefits each gains from use of the other’s facilities. One possible reason for such a reciprocal agreement is to expand service available for customers and potential customers without the capital infrastructure costs that would otherwise be incurred. Although one party’s costs may be greater or less than the other’s, that is not the basis for the reciprocity. Ultimately, a reciprocal agreement envisions that compensation occur when one of the parties performs more services for the other than are received. That is the case here, and petitioners’ expert, although accepting that the approach of DHL and DHLI was at arm’s length, devised an approach that ignored the parties’ understanding. In addition to the theory and substance deficiencies in petitioners’ expert's report, respondent points out the following flaws: (1) Many of the numbers for 1989 and 1990 are not supported in the record, and no analysis was provided as to how they were calculated; (2) the position is taken that petitioners’ expert’s estimated numbers were more reliable than DHLI’s actual numbers, even though a large portion of DHLI’s financialPage: Previous 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 Next
Last modified: May 25, 2011