Section 13.35 Expert Testimony on Commercial Values and Economic Losses

• Library: Sources of Proof (2014 Ed.)

C. (§13.35) Expert Testimony on Commercial Values and Economic Losses

Expert testimony may also be received on matters related to business valuation, as well as issues of future lost wages or income. For example, expert testimony may be used to establish the value of privately held stock in an unlisted closely held company. Thill v. Thill, 26 S.W.3d 199, 203–06 (Mo. App. W.D. 2000). The loss of business opportunity and profits when an individual is denied a stock purchase option is also a proper subject for expert economic testimony. Green v. Beagle-Chilcutt Painting Co., 726 S.W.2d 344 (Mo. App. W.D. 1987). Expert testimony can also be utilized as a source of proof regarding whether claims were settled reasonably. Parker v. Stern Bros. & Co., 499 S.W.2d 397, 410–11 (Mo. 1973). Expert testimony on the meaning of accounting terms was held to be proper in UMB Bank, NA. v. City of Kansas City, 238 S.W.3d 228, 233 (Mo. App. W.D. 2007).

Testimony of an economist is generally required to establish the present value of future economic losses. The discount rate used to calculate present value is one controversial subject of economic testimony. The discount rate is the percentage rate at which a stream of money over time is discounted to produce a present-day value. Variations in the rate can make a substantial difference in the present value, and the parties frequently disagree as to the appropriate rate.

In a damages case, the plaintiffs benefit from a low percentage and the defendants benefit from a high one. In Brickner v. Normandy Osteopathic Hospital, Inc., 746 S.W.2d 108 (Mo...