David Nolte

I am a founding principal of Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I am a Certified Public Accountant (CPA) and an Accredited Senior Appraiser (ASA), as well as having other professional credentials. I regularly serve as an expert witness involving damages measurement. My litigation-oriented resume is on Fulcrum's website.

Most commented posts

  1. Federal health care fraud enforcement efforts recover record amounts — 5 comments
  2. CFOs are dissatisfied with Big 4 Accounting firms — 3 comments
  3. IRS issues final regulations on taxation of personal injury damages — 3 comments
  4. Most Debt-Limit Debate Ignores the Real Issues — 2 comments
  5. Large IRS Whistleblower Payoff Encourages Others — 2 comments

Author's posts

Award of expert fees to prevailing party upheld without common limitations

In Equal Employment Opportunity Commission vs. Peoplemark, Inc., Case. No. 11-2582 (6th Cir. October 7, 2013), the Sixth Circuit reviewed the award of legal and expert fees. The matter is particularly interesting regarding the expert fees awarded, and the explanation for doing so. The Sixth Circuit’s Opinion included the following case facts: “Defendant-appellee Peoplemark is …

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Permanent link to this article: https://betweenthenumbers.net/2013/11/award-of-expert-fees-to-prevailing-party-upheld-without-common-limitations/

Get the Court’s Daubert Rationale on the Record

A recent ruling encourages any litigator sponsoring expert testimony to ensure that the Court memorializes its critique of the Court’s gatekeeping function of expert testimony. The ruling also reversed two inherently speculative damage claims claims that  are not that uncommon. In Smith v. Jenkins, F.3d (1st Cir. Oct. 15, 2013) (Nos. 11–2349, 11–2378, 11–2389), the Appellate Court …

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Permanent link to this article: https://betweenthenumbers.net/2013/11/first-circuit-reverses-two-speculative-damage-types/

Most S-Corporations should pay greater attention to shareholder/employee compensation

The IRS continues to pursue S-Corporations that do not pay employment/payroll taxes on what the IRS considers to be reasonable compensation. Following other cases on this subject, in Sean Mcalary Ltd, Inc., vs. Commissioner Of Internal Revenue, T.C. Summary Opinion 2013-62 (August 12, 2013), the Tax Court generally ruled in favor of the IRS. The …

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Permanent link to this article: https://betweenthenumbers.net/2013/11/most-s-corporations-should-pay-greater-attention-to-shareholderemployee-compensation/

Nash bargaining solution in patent damages is not always a 50%/50% split

The Federal Circuit ruled in Uniloc USA, Inc. v. Microsoft Corp. that the widely used (but fatally flawed) 25 percent rule can no longer be part of reasonable royalty damages calculations. This article provides the details of this reasonable royalty damages decision. Since that time, plaintiffs have advanced the Nash Bargaining Solution, a theoretical mathematical …

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Permanent link to this article: https://betweenthenumbers.net/2013/11/nash-bargaining-solution-in-patent-damages-is-not-always-a-5050-split/

IRS fumbles around $125 Billion in the last decade for incorrect EITC

The Earned Income Tax Credit (EITC) is a refundable tax credit that allows those completing a tax form to get a refund in excess of any tax that might have been paid. The Internal Revenue Service (IRS) is responsible for administering the EITC. Congress originally approved the EITC legislation in 1975. In an August 28 …

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Permanent link to this article: https://betweenthenumbers.net/2013/10/irs-fumbles-around-125-billion-in-the-last-decade-for-incorrect-eitc/

President Obama proposes still more tax increases

With debt ceiling talks getting more attention, the issue of tax increases will again be on the table. If you thought last year’s massive tax increase satisfied the “tax the rich” proponents, you are wrong again. Here is a summary of the tax increases President Obama included in his 2014 budget. Although these tax increases …

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Permanent link to this article: https://betweenthenumbers.net/2013/09/president-obama-proposes-still-more-tax-increases/

Pay more attention to compensatory damages: Punitive damages remain limited to simple multipliers

In Nickerson v. Stonebridge Life Insurance Company (B234271, Aug. 29, 2013), the California Court of Appeal affirmed the trial court’s reduction of the jury’s punitive damage award to ten times the tort damages. In reaching this decision, the Appellate Court extensively discussed the defendant’s conduct, and its application under federal and California punitive damage law. …

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Permanent link to this article: https://betweenthenumbers.net/2013/09/pay-more-attention-to-compensatory-damages-punitive-damages-remain-limited-to-simple-multipliers/

IRS officially recognizes same sex marriages

On August 29, 2013, the Internal Revenue Service (IRS) issued Revenue Ruling 2013-17. Consistent with the U.S. Supreme Court ruling in Windsor, the IRS concludes: “…individuals of the same sex will be considered to be lawfully married under the Code as long as they were married in a state whose laws authorize the marriage of two …

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Permanent link to this article: https://betweenthenumbers.net/2013/09/irs-officially-recognizes-same-sex-marriages/

Seventh Circuit pulls back on Daubert expert witness exclusions

Stollings vs. Ryobi Technologies (7th Cir, August 2, 2013) involves a product liability suit for faulty design in which the Plaintiff sustained injuries on a power saw. Plaintiff planned to offer expert testimony from an academic named Graham that the installation of: “… automatic braking technology on all power saws would be socially beneficial because …

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Permanent link to this article: https://betweenthenumbers.net/2013/08/seventh-circuit-pulls-back-on-daubert-expert-witness-exclusions/

Big setback in California to reclassify workers as employees

On July 11, 2013, in re: Beaumont-Jacques v. Farmers Group Insurance, a California appellate court affirmed summary judgment in favor of an insurance company. The issue was whether a District Manager was properly classified as an independent contractor, rather than an employee. The decision is perhaps not as significant once one understands the underlying written …

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Permanent link to this article: https://betweenthenumbers.net/2013/08/big-setback-in-california-to-reclassify-workers-as-employees/