Strength of Expert Witness Helps Secure Company Tax Appeal Win at Supreme Court Level
Client: Large Millwork Company
Challenge: Prepare Appraisal; Provide Litigation Support; Testify as Expert Witness
A well-known manufacturer of wood molding chose AccuVal as their expert to provide appraisal and litigation support in a precedent-setting tax case that went to the Minnesota State Supreme Court. AccuVal prepared an appraisal of the real property which consisted of a multi-building millworking complex on approximately 19 acres. AccuVal's appraisal indicated a much lower value than the value assigned by the local assessing jurisdiction or their experts. The matter went to trial before the State Tax Court and ultimately the State Supreme Court, where AccuVal supplied expert testimony and strategic assistance by analyzing the opposition's valuation arguments and witness credibility.
AccuVal Approach
The client and their tax attorney relied on AccuVal to provide clear and convincing evidence to support its opinion of value. AccuVal's strategy in cases such as this is to become intimately aware of all details of the property being appraised as well as details of all properties being used as sales comparables in the appraisal. This work entailed searching out the best and most comparable sales transactions, making a site visit to each of location, and contacting parties with firsthand knowledge of the transactions to gain insight into the relevant data. This strategy paid off before both the State Tax Court and the State Supreme Court. AccuVal also reviewed the opposition's appraisal, identifying significant flaws that debased the validity of their conclusions. When the matter went to trial, AccuVal presented its evidence via direct testimony and under cross-examination. The Tax Court stated that, after carefully reviewing the written appraisals and testimony of both experts, and all other evidence presented to them, they relied on AccuVal's expert witness.
Bottom Line: AccuVal Appraisal Upheld and Assessment Reduced by 70 percent, Approximately $1.4 Million
AccuVal prepared an appraisal with the correct amount of detail to support accurate and defensible valuation conclusions that were upheld in both the State Tax Court and the State Supreme Court. AccuVal discredited the opposing appraisal by drawing attention to their limited knowledge of relevant facts and their inability to accurately identify or quantify the buildings' functional obsolescence. In its decision on this case, the Minnesota State Supreme Court upheld AccuVal's value conclusion as the correct one and agreed to the awarding of the firm's expert witness fee. The court's published opinion noted the skills of AccuVal's expert when it stated, "Reliance was placed on the comparable sales approach as used by the corporation's appraiser (AccuVal) because of the credibility of his testimony, his experience and his thorough research and investigation..."
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