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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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