-321-
and for analyzing the deficiencies and discrepancies in the
transfer of the EBD film library from CLIS to SMHC. With respect
to petitioner’s specific concerns regarding Ms. Nemschoff’s
experience in drafting contracts and working on film or film
library transfers, we believe those concerns go more to the
weight to which her opinion is entitled than to its admissibility
under Daubert v. Merrell Dow Pharms., Inc., supra, and Kumho Tire
Co. v. Carmichael, supra.219
Although we conclude that Ms. Nemschoff’s opinion is
admissible into evidence, we do not need to rely on her opinion
to reach our conclusions in these cases. For the reasons
discussed in more detail above, we find ample evidence in the
record to show that the Ackerman group’s investigation of SMHC’s
219 In preparing her report, Ms. Nemschoff retained the
services of the law offices of Dennis Angel to search the records
of the U.S. Copyright Office with respect to the film titles in
the EBD film library. Ms. Nemschoff represents that it is
customary for entertainment lawyers to rely on copyright searches
and reports by professionals such as Mr. Angel and his staff and
that she has been retaining his services and relying on his
copyright searches and reports for at least 15 years.
Under Fed. R. Evid. 702 and 703, experts are permitted to
rely on evidence outside the trial record, which may include
hearsay that is otherwise inadmissible. RLC Indus. Co. & Subs.
v. Commissioner, 98 T.C. 457, 499 (1992), affd. 58 F.3d 413 (9th
Cir. 1995); H Group Holding, Inc. v. Commissioner, T.C. Memo.
1999-334. The information that Mr. Angel relayed to Ms.
Nemschoff is admitted to understand or explain the basis of her
expert opinion; however, we do not rely on that information or
consider it for the truth of the matters asserted therein. See
Engebretsen v. Fairchild Aircraft, Corp., 21 F.3d 721, 728-729
(6th Cir. 1994); H Group Holding, Inc. v. Commissioner, supra.
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