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Olson v. Nieman's Ltd.5/28/1998
y: damages.
Nieman also challenges the testimony given by Olson's damages expert, Wayne Newkirk. The challenge is two-pronged: Newkirk lacked the qualifications necessary to give his opinion on damages, and his damages calculations were speculative.
1. Qualifications.
Nieman claims Newkirk is not an expert on the recreational vehicle industry, trailer safety, or any other field that would allow him to specifically opine as to the potential sales for a breakaway hazard device. Thus, Nieman concludes, Newkirk lacks the qualifications necessary to testify as an expert witness.
Iowa Rule of Evidence 702 allows a "witness qualified as an expert by knowledge, skill, experience, training, or education testify . . . in the form of an opinion or otherwise" as to "scientific, technical, or other specialized knowledge [provided such knowledge] will assist the trier of fact to understand the evidence or to determine a fact in issue." (Emphasis added.)
Whether a witness is qualified to give expert testimony lies within the discretion of the district court. We will not reverse its decision absent an abuse of that discretion and prejudice to the complaining party. Hyler v. Garner, 548 N.W.2d 864, 868 (Iowa 1996). Moreover, the source of expert knowledge is not significant. DeBurkarte, 393 N.W.2d at 138 (holding that physician need not be specialist in particular field of medicine to give expert testimony).
Newkirk has a bachelor of science degree, a master's degree, and a doctorate, all in the field of economics. He also has a law degree. Newkirk is and has been a full professor in economics since 1972. He does consulting work, most notably valuing intellectual property such as trademarks, trade secrets, copyrights, and patents, and has testified as an expert witness in numerous cases.
Newkirk testified that in preparing for his testimony he studied reports concerning the sales of recreational vehicles in the United States. The reports were prepared by the Recreation Vehicle Industry Association. He also studied Nieman's sales information regarding breakaway kits. The district court put the issue of Newkirk's qualifications in proper perspective: "I recognize the fact that challenging Dr. Newkirk as an expert is sort of like flying in the face of motherhood with a flag and in a rocking chair with apple pie."
We think Newkirk was qualified to testify regarding damages, and, more specifically, regarding the potential sales for a breakaway hazard device. Any deficiencies in his background such as lack of experience with the recreational vehicle industry go to the weight of his testimony rather than to its admissibility. See Hutchison v. American Family Mut. Ins. Co., 514 N.W.2d 882, 885 (Iowa 1994) (holding that if witness has threshold qualifications to testify as an expert, any inquiry concerning the extent of his qualifications goes to the weight of his testimony and not to its admissibility).
1. Damages calculations.
The closer question is whether there was a reasonable basis for Newkirk's damages calculations. Nieman contends there was not such a reasonable basis because Newkirk made three assumptions having no support in the evidence. In short, Nieman characterizes Newkirk's testimony as pure "speculation and guess-work." Newkirk assumed (1) the relevant market was recreational vehicles, (2) in the first year Olson would sell the devices manufactured by Nieman to 10% of the recreational vehicle market, and (3) a steady increase in the percentage of sales over the seventeen-year life of the would-be patent.
There is a distinction between proof of the fact that damages have been s
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