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petitioner's bidding procedures and costs supplied by petitioner
to Mr. Sager.
In his testimony, Mr. Sager referred to two sets of
documents that he used in the preparation of his report. The
first set was 36 pages of photocopies of various money orders
(and a few receipts) assertedly representing expenses paid by
petitioner in cash. The second set was seven 1-page "bid
sheets," assertedly representing petitioner's estimates of cost
and profit for seven plumbing jobs.
The parties agreed that these documents were hearsay.
Accordingly, we admitted them only for the purpose of learning
about the basis for Mr. Sager's testimony and report; we did not
admit them as proof of the matters asserted therein.
B. Copies of Money Orders and Receipts
At trial, it became clear that Mr. Sager relied on the
copies of money orders and receipts only to a limited extent in
preparing his report. Mr. Sager testified that when he reviewed
petitioner's money orders and receipts, he did not try to justify
any of them as an actual business expense. He further said that
he could not tell which of the money orders represented business
expenses and which personal expenses. As petitioner's counsel
stated and Mr. Sager confirmed, the copies of money orders were
offered solely to show that when petitioner told Mr. Sager that
petitioner paid expenses in cash, Mr. Sager "saw things that
looked in that nature".
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