Santa Monica Pictures, LLC, Perry Lerner, Tax Matters Partner - Page 250

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               Ms. Nemschoff concluded that the steps taken by SMP and SMHC           
          contrast sharply with those that would normally be expected from            
          a party undertaking such a transaction in a number of key areas,            
          including identification of the film titles and the rights being            
          acquired, warranties and representations regarding ownership,               
          chain of title, delivery materials, and recordation of the                  
          transaction.  She opined that the acquisition was conducted in a            
          manner that strongly suggests a lack of concern on SMP’s part               
          with respect to its ownership of the film titles or its ability             
          to exploit them.  Instead, she observed that SMP apparently                 
          adopted the relatively risky strategy of acquiring the film                 
          titles with only minimal information as to the film titles                  
          themselves, the rights being acquired, and the availability of              
          the physical materials necessary for their exploitation.  Ms.               
          Nemschoff’s conclusions were based primarily, if not solely, on             
          her experience as an entertainment attorney.                                
                    b.  Petitioner’s Arguments                                        
               In his motion in limine and on brief, petitioner argues that           
          we should exclude Ms. Nemschoff’s expert report and testimony               
          under Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579 (1993),            
          and Kumho Tire Co. v. Carmichael, 526 U.S. 137 (1993).  First,              
          petitioner argues that Ms. Nemschoff’s report is unreliable                 
          because it broadly asserts what is typical and customary with               
          respect to film-transfer transactions but fails to support that             






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