Santa Monica Pictures, LLC, Perry Lerner, Tax Matters Partner - Page 244

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          XII. Evidentiary Matters                                                    
               A.  Daubert Issues                                                     
               The parties have submitted expert opinions (in addition to             
          those previously discussed) that they assert are relevant.                  
          Petitioner submitted the expert report and testimony of Todd                
          Crawford of Deloitte & Touche, LLP, Houston, Texas.  Respondent             
          submitted the expert reports and testimonies of Louise Nemschoff            
          and Alan C. Shapiro.  Before trial, the parties filed respective            
          motions in limine to the expert opinions of Mr. Crawford, Ms.               
          Nemschoff, and Mr. Shapiro.  At trial, we conditionally admitted            
          the expert reports and testimonies of these witnesses and took              
          the parties’ objections under advisement, affording the parties             
          an opportunity to brief their objections in relation to the                 
          issues in these cases.                                                      
               Under rule 702 of the Federal Rules of Evidence:                       
                    If scientific, technical, or other specialized                    
               knowledge will assist the trier of fact to understand                  
               the evidence or to determine a fact in issue, a witness                
               qualified as an expert by knowledge, skill, experience,                
               training, or education, may testify thereto in the form                
               of an opinion or otherwise, if (1) the testimony is                    
               based on sufficient facts or data, (2) the testimony is                
               the product of reliable principles and methods, and (3)                
               the witness has applied the principles and methods                     
               reliably to the facts of the case.                                     
          In Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579, 597                  
          (1993), the U.S. Supreme Court held that, under the Federal Rules           
          of Evidence, the trial judge must ensure as a precondition to               
          admissibility that any and all scientific testimony rests on a              





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