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conclusions in wholesale fashion. As a consequence, Mr.
Cronkite’s market approach, too, offers only a modicum of
guidance in valuing the subject note.
Mr. Thomson’s Approach: We now address Mr. Thomson’s
approach, which weighed five factors in arriving at a 10-percent
discount for the Marsh note. We deal with each of these
components seriatim, beginning with the factor addressing
collateral coverage. Mr. Thomson opined that collateral coverage
on the Marsh note was good and cited both the $1 million note
secured by deed of trust and the underlying mobile home park in
support of this assertion. The estate raises several points in
response to Mr. Thomson’s position on coverage, one of which
involves the existence of a senior lien on the mobile home park.
As previously mentioned, Mr. Cronkite’s report references a
first trust deed in the amount of $10 to $11 million; Mr.
Cronkite testified at trial that this statement was based on his
discussion with Mr. Marsh and that he had seen no documents
related to the encumbrance.
We pause here to note that the estate attempted at trial to
introduce public records from the Los Angeles County Recorder’s
Office relating to the alleged first lien. Respondent’s
objection to these documents was sustained on the grounds that
the information was requested from the estate during discovery,
was not provided, and should have been stipulated and/or
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