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

Another Daubert reversal of disallowed expert testimony

On July 19, in re: Gregory Call vs. Pure Earth, et al, the Third Circuit reversed a district court’s ruling that excluded expert witness testimony based on Daubert grounds. The matter was remanded for a new trial on damages. Although the Third Circuit addressed the specifics of this case in a manner that probably is …

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Permanent link to this article: https://betweenthenumbers.net/2013/08/another-daubert-reversal-of-disallowed-expert-testimony/

Fifth Circuit ruling re: Dodd-Frank Whistleblowers sets up Supreme Court appeal

In Asadi v. GE Energy (USA), L.L.C., No. 12-20522 (5th Cir. July. 17, 2013), the Fifth Circuit ruled that a whistleblower under Dodd Frank must report the complaint to the SEC to obtain whistleblower protection under Dodd-Frank. The Fifth Circuit summarized the statutory background and its ruling as follows: “Congress enacted Dodd-Frank in the wake …

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Permanent link to this article: https://betweenthenumbers.net/2013/07/fifth-circuit-ruling-re-dodd-frank-whistleblowers-sets-up-supreme-court-appeal/

Damage issues become more important in class certifications

In Comcast Corp. v. Behrend, No. 11-864 (March 27, 2013), in a 5 to 4 ruling, the Supreme Court of the United States (“SCOTUS”) determined that damage issues need to be addressed as part of the class certification process, and that such damages need to be consistent with the alleged liability issues. Trial counts must …

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Permanent link to this article: https://betweenthenumbers.net/2013/07/damage-issues-become-more-important-in-class-certifications/

Novel argument still does not extend jurisdiction of U.S. patent damages

In re: Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc. et al. No. 11-1218, -1238 (Fed. Cir. Mar. 26, 2013), the Court addressed the issue of the interplay of general damages theory with patent damages. In general, damages are calculated in a manner that allows the plaintiff to be put back to an economic position …

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Permanent link to this article: https://betweenthenumbers.net/2013/07/novel-argument-still-does-not-extend-jurisdiction-of-u-s-patent-damages/

Use of Internal Personnel for Whistleblower Reporting Costs Employer in Tenth Circuit Case

In Lockheed Martin Corp. v. Brown, No. 11-9524 (10th Cir. Jun. 4, 2013), the Tenth Circuit supported a broad interpretation of the claims that are protected under the anti-retaliation provisions of the Sarbanes-Oxley Act. The Tenth Circuit broadly described the case as follows: “Lockheed Martin Corp. (“Lockheed”) seeks to set aside a decision of the …

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Permanent link to this article: https://betweenthenumbers.net/2013/07/use-of-internal-personnel-for-whistleblower-reporting-costs-employer-in-tenth-circuit-case/

Federal Circuit leaves large damage award stand

The Federal Circuit affirmed a $391 million damage award in Versata Software, Inc. v. SAPAmerica, Inc., No. 2012-1029, -1049 (Fed. Cir. May 1, 2013). In reviewing the damage portion of the ruling, one cannot help but wonder about the damages calculation strategy that the defendant employed. The Federal Circuit summarized the parties and the infringement …

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Permanent link to this article: https://betweenthenumbers.net/2013/06/federal-circuit-leaves-large-damage-award-stand/

Federal Circuit Reiterates Reasonable Royalty Principles

The Federal Circuit in re: Douglas Dynamics, LLC v. Buyers Product Company (Fed. Cir. May 21, 2013) provides reminders of how reasonable royalty damages must be calculated, and then remanded the damages verdict for retrial. The Federal Circuit succinctly summarized the parties and their products as follows: “Douglas and Buyers both manufacture snowplow assemblies for …

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Permanent link to this article: https://betweenthenumbers.net/2013/06/federal-circuit-reiterates-reasonable-royalty-principles/

Valuations should carefully consider application of the income and market approach

In a recent bankruptcy case, a plaintiff valuation expert provided, without proper justification, 70% reliance on what the Court described as a biased application of the discounted cash flow (DCF) approach to value (an income approach)  to determine her appraisal conclusions. The discounted cash flow analysis is a commonly-used, and conceptually excellent method of performing …

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Permanent link to this article: https://betweenthenumbers.net/2013/04/valuations-of-larger-companies-must-carefully-consider-the-market-approach/

Third Circuit supports whistleblower claim based on a more lenient standard

A Tyco Electronics accountant named Jeffrey Wiest consistently reported (and denied payment for) what he thought were inappropriate employee entertainment/party expenses because they did not meet IRS guidelines and his employer’s internal guidelines. The accountant claims that he was terminated in retaliation to his persistence in following proper accounting procedures. A district court threw out …

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Permanent link to this article: https://betweenthenumbers.net/2013/03/third-circuit-supports-whistleblower-claim-based-on-a-more-lenient-standard/

Seventh Circuit bars class certification because of damages

The Seventh Circuit decided Espenscheid vs. DirectSat, Inc., (No. 12-1943, February 4, 2013), upholding the district court’s decision to not certify a class of employees containing wage and hour law violations. The ruling is notable as class certification was denied because the class members had different amounts of claimed work that had not been properly …

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Permanent link to this article: https://betweenthenumbers.net/2013/03/seventh-circuit-bars-class-certification-because-of-damages/