Sunday, April 10, 2005

3d Circuit Upholds Exclusion of Damages Testimony in Franchise Dispute

In an unpublished opinion, the Third Circuit has upheld the trial court's exclusion of plaintiff's expert on damages in a franchise dispute, as well as the lower court's award of summary judgment to the defendant. The expert was unfamiliar with the plaintiff's business, according to the Third Circuit panel. Moreover, the expert's damages model was speculative and would therefore have lacked probative value even if admissible under Daubert, the panel said. See Crawford v. SAP America, Inc., No. 04-1849 (3d Cir. Apr. 7, 2005) (Roth, Chertoff, & Restani, JJ.).

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Fed. R. Evid. 702: If scientific, technical, or other specialized knowledge will assist the trier of fact to understand the evidence or to determine a fact in issue, a witness qualified as an expert by knowledge, skill, experience, training, or education, may testify thereto in the form of an opinion or otherwise, if (1) the testimony is based upon sufficient facts or data, (2) the testimony is the product of reliable principles and methods, and (3) the witness has applied the principles and methods reliably to the facts of the case.