Trial Court Erred in Countenancing Expert's Novel and Untested Methodology, 6th Circuit Says

In a case involving claims that one model train distributor misappropriated the designs of another, the Sixth Circuit has overturned a $40 million jury verdict, holding that the trial court erred in admitting testimony from an engineering expert whose novel methodology was developed for litigation. "[T]here is no evidence," says the appellate opinion, "that his methodology had ever been tested, subjected to peer review, possessed a known or potential rate of error, or enjoyed general acceptance." In addition, the panel held that under Fed. R. Evid. 703, the expert should not have been permitted to testify, on direct, to findings reached by another analyst. See Mike's Train House, Inc. v. Lionel, L.L.C., No. 05-1095 (6th Cir. Dec. 14, 2006) (Daughtrey, Cole, & Graham, JJ.).