- 30 -
1985. In our opinion, we think that there would have been some
significant increases or, at least, variations in the value of
the real property in the space of 4 years. Finally, we note that
Lee, in his determination of the value of the secrecy agreement,
did not explicitly state the grounds for valuing the
aforementioned agreement at $1 million. He appears to have based
that valuation on the fact that the purchasers reduced Old
Lorvic's purchase price by that particular amount upon learning
that Shearson Lehman was circulating the Descriptive Memorandum.
Next, we are not satisfied with the testimony of Dr.
Schutte. At the outset, Dr. Schutte submitted a report which was
later revised to correct numerous and substantive mathematical
errors. We are not certain they were adequately corrected. We,
therefore, do not have great confidence in the substance of Dr.
Schutte's report and testimony. In that setting, we scrutinize
Dr. Schutte's report.
Dr. Schutte conducted discussions with Nemanick and Leck
regarding Old Lorvic's business and reviewed the relevant
financial information appurtenant to the 1989 purchase. Dr.
Schutte's estimations, however, present us with some difficulty.
Dr. Schutte computed that, in any given year, there was a 30-
percent probability that Scherer would enter the market in
competition with petitioner. In that vein, Dr. Schutte estimated
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 NextLast modified: May 25, 2011