Winter 2008

Roles of the Financial Expert in Providing Litigation Support Services

Litigation involving financial matters is commonplace. Whether it’s the valuation of a business, the amortization of intangible assets, calculating a business’s net earnings or performing damage calculations, many financial issues may arise. Read more...

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

A Look at Pre- and Post-Judgment Interest

Interest can be an important part of a total compensatory damage award. That’s because the litigation process for any given case can take years to complete, and interest can quickly add up.

Some states authorize pre-judgment rates as high as 12%. Thus, a case on a three-year track raises the possibility of an additional 36% (or more, due to potential compounding) being tacked on to any judgment. Read more...

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Tax Accrual Papers Protected by Work Product Doctrine

In a case that may be just as significant for civil procedure and discovery as it is for tax matters, a federal district court has recently decided against the IRS where it had attempted to obtain a taxpayer’s tax accrual work papers from its financial services subsidiary. Read more...

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Use of Personal Notes: Waiver of Privilege?

Generally speaking, when a witness uses a writing to refresh his or her memory either prior to or during testimony, opposing counsel is entitled to production of the document.

However, a federal court has recently ruled (in Calandra v. Sodexho, Inc. (DC-Conn., 4/27/2007)) that, where a plaintiff had reviewed his notes prior to giving a deposition, the attorney-client privilege wasn’t waived and, therefore, production of the notes was not compelled. Read more...

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Briefs

House Passes Act Making Tax-Planning Methods Unpatentable

The House of Representatives passed the Patent Reform Act of 2007 (H.R. 1908) on September 7, 2007. Essentially, the Act renders tax-planning methods unpatentable. A 1998 Federal Appeals decision, State Street Bank & Trust Company v. Signature Financial Group, Inc., 149 F.3d 1368 (Fed. Cir. 1998), initially permitted protection for “business methods and processes,” including tax strategies covering estate and gift taxes, charitable giving, pension planning, etc. Read more...
 

About Our Litigation & Valuation Team Services

Litigation Services

• Damage analysis for lost profits, royalties or unjust enrichment

• Measuring economic consequences of losses

• Exhibit development

• Expert testimony

• Due diligence

• Asset searches/ transaction tracing

Valuation Consulting

• Marital dissolution

• Minority shareholder disputes

• Estate planning

• Succession planning

• Goodwill impairment

• Gift planning

• Mergers/acquisitions

• Selling your business

Join Steve Riddle on Wednesday, February 27 for the Practical MBA Session as he presents SWOT Analysis.

Click here for more details and to register.

This newsletter is provided by Somerset CPAs for our clients and other interested persons upon request. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. For additional information on the issues discussed, please contact Steve Riddle, Tom Thieme, Rex Collins or Doug Ayres of our Litigation & Valuation Team.

This document is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer.

Somerset CPAs, P.C.
3925 River Crossing Parkway
Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206
FAX 317.208.1200
www.somersetcpas.com