Brewer Quality Homes, Inc. - Page 30

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               (b)  Sledge                                                            
               Sledge is a C.P.A. in private practice in his own firm.  He            
          was awarded the degree of B.S. in Industrial Psychology by                  
          Louisiana State University and took postgraduate work to prepare            
          himself for the C.P.A. examination.  He has testified as an                 
          expert witness in business valuation cases, and other matters               
          involving officer compensation issues.                                      
               Sledge did not determine what was maximum reasonable                   
          compensation for Jack’s services to petitioner in the years in              
          issue, but concluded that “it is my opinion that the salary paid            
          to Mr. Brewer during 1995 and 1996 is reasonable.”  As a result,            
          we can agree with much of what Sledge says, and still have little           
          or no guidance from his expert witness report as to what numbers            
          to set for reasonable compensation.                                         
               Before the trial, respondent moved in limine to exclude                
          Sledge’s expert witness report and to not allow Sledge to testify           
          as an expert witness.  Respondent pointed to Sledge’s obvious               
          conflict of interest and contended that Sledge “is unable to                
          provide the degree of objectivity required of an expert witness.”           
          We concluded that, in the instant case, it was better to (1) take           
          Sledge’s conflict of interest into account in weighing his expert           
          witness report and expert testimony, and (2) not exclude Sledge             
          and his report.  In retrospect, we conclude that we made the                
          right decision on this matter; i.e., we conclude that Sledge’s              






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