- 6 - Myra Harrison could not be replaced at any price.” Following the remand of this case to us by the United States Court of Appeals for the Ninth Circuit, petitioner moved the Court to hold an evidentiary hearing limited to “the external comparison factor of the Elliotts test”, so that the Court could properly evaluate that factor. Respondent objected to the motion, and we denied it. In our order disposing of the motion, we agreed with respondent that, having eschewed such testimony at trial, petitioner would not be prejudiced by being denied the opportunity to supplement the record with additional expert testimony addressed at external comparisons. We added that granting the motion would undermine principles of judicial economy and the need for finality. Finally, we stated that we were convinced by respondent that he would be prejudiced if forced to expend additional resources to rebut any additional testimony. Petitioner bears the burden of proof, and we have little, if anything, in the way of guidance from petitioner to aid us in fixing a number for the reasonable amount of compensation paid to Mrs. Harrison for the audit years. In its supplemental brief on remand, petitioner suggests that we adopt the perspective of a hypothetical independent investor to determine whether such an investor would be satisfied with his return on equity after the compensation in issue was paid. See Elliotts, Inc. v.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011