Tag: Economics

  • Economics Expert Was Allowed to Opine on Kidney Transplant Allocations

    Economics Expert Was Allowed to Opine on Kidney Transplant Allocations

    Plaintiff Anthony Randall (“Randall”) is an individual residing in Los Angeles, California. Randall identifies as Black. As of the time of the filing of his complaint, he was on the waiting list for a kidney transplant.

    Defendant United Network for Organ Sharing (“UNOS”) is a private nonprofit organization that manages the national organ transplant waiting list. UNOS coordinates with transplant hospitals that refer patients seeking placement on the list. Defendant Cedars-Sinai Medical Center (“Cedars-Sinai”) is one of those hospitals.

    Randall has designated Professor David M. Cutler as an expert witness and submitted Cutler’s expert report. Randall retained Cutler to evaluate the following questions:

    “(1) Do you find to a reasonable degree of professional and scientific certainty in the field of health economics that there is a well-accepted methodology to determine how class members’ wait times, and thus changes to be offered acceptable kidneys, were impacted by Defendants’ use of the race-based coefficient? (2) If yes, what are the methodologies and what is the impact?”

    However, Defendants filed a motion to exclude the expert opinions of Cutler under Rules 401, 403, and 702.

    Economics Expert Witness

    David Matthew Cutler is the Otto Eckstein Professor of Applied Economics at Harvard University. He has earned a Ph.D. in Economics from the Massachusetts Institute of Technology in 1991 and an A.B. from Harvard University in 1987.

    Cutler has been on the faculty at Harvard for over 30 years. Moreover, Cutler’s work in health economics and public economics has earned him significant academic and public acclaim. Professor Cutler served on the Council of Economic Advisers and the National Economic Council during the Clinton Administration and has advised the Presidential campaigns of Bill Bradley, John Kerry, and Barack Obama as well as being Senior Health Care Advisor for the Obama Presidential Campaign.

    Want to know more about the challenges David Cutler has faced? Get the full details with our Challenge Study report.

    Discussion by the Court

    a. Under Rule 402, Randall has sufficiently shown that Cutler’s opinions are relevant and will help the trier of fact

    Defendants suggested that the evidence would be irrelevant to the trier of fact because “Cutler fails to identify a single definitive measure the trier of fact should use to identify specific violations of the Unruh Civil Rights Act.” They also reasserted the argument that Cutler’s model cannot distinguish harm caused by Defendants from harm caused by a third-party actor. Even accepting those arguments as true, however, they do not establish that the evidence is irrelevant. To the extent Defendants’ arguments diminish the relevance of Cutler’s opinions, they go to the weight of the evidence—not its threshold admissibility.

    b. Under Rule 702(c), Randall has sufficiently shown that Cutler’s methodology is scientifically reliable

    Randall has offered, and Defendants did not seem to meaningfully dispute, that Cutler’s use of simulation modeling and partial equilibrium analyses have appeared in peer-reviewed literature and amassed acceptance among peer-reviewed economics articles and researchers in the medical industry.

    Instead, Defendants argued that Cutler’s methodology is unreliable because it has “never been tested by anyone” or “admitted into evidence.” But the standard that Defendants suggested—that studies adopting a similar methodology to Cutler’s in the same field as Cutler did not support Randall’s argument because they did not “address the impact of the race-based coefficient on an offer and/or acceptance of a kidney transplant” or “apply Cutler’s unique modeling” as constructed for this case—appeared to reach beyond what Rule 702 requires. In other words, the Court need not find that someone in Cutler’s position has used this specific combination of models to resolve an identical factual question to Cutler to find that Cutler’s opinions are reliable.

    c. Under Rule 702(d), Randall has sufficiently shown that Cutler’s methodology was applied reliably to the facts of this case

    Defendants argued that Cutler’s methodology is premised on factually inaccurate assumptions that invalidate his approach and lead to incorrect and unreliable conclusions.

    The sole premise that Defendants attacked on this basis is “the premise that a patient qualifies to be registered on the national kidney list and otherwise begins to accrue wait time as soon as he or she has an eGFR score of 20 mL/min or less.”

    It did appear that Defendants have submitted some evidence that the 20 mL/min threshold did not govern every patient’s eligibility for transplant. At the hearing, Defendants argued that Randall has not actually shown that this fact is in dispute—that is, that 20 mL/min is actually the threshold at which a patient qualifies to be registered on the national kidney transplant list and otherwise begins to accrue wait time.

    It appeared to the Court that Randall has failed to establish that the 20 mL/min threshold is dispositive. But this is of no moment, as it appeared that even if not dispositive, if it is significant at all—and Randall has presented evidence that it is—this would be a useful assumption for Cutler to use in his model. The fact that his model did not attempt to—and therefore cannot—account for other factors did not make his conclusions unreliable.

    Held

    The Court denied Defendants’ motion to exclude the expert opinions of David Cutler.

    Key Takeaway

    The Court’s role is to “determine the scientific validity of an expert’s principles and methodology, not to determine whether their hypothesis is correct, or to evaluate whether it is corroborated by other evidence on the record.”

    So, to the extent that the parties dispute the significance of the 20 mL/min threshold, Defendants can cross-examine the witness on the reliance on what they see as a disputed or false assertion. An expert need not align with every aspect of Defendants’ interpretation of the evidentiary record to meet the Rule 702(c) threshold. To that end, the fact that Cutler’s assumptions rely upon disputed facts is a matter best resolved through cross-examination, not exclusion altogether.

    Case Details:

    Case Caption: Anthony Randall V. United Network For Organ Sharing
    Docket Number: 2:23cv2576
    Court Name: United States District Court, California Central
    Order Date: February 12, 2026
  • Economics Expert Was Allowed to Opine on the Cut-Off Date for Damages

    Economics Expert Was Allowed to Opine on the Cut-Off Date for Damages

    This is an employment lawsuit brought by Stephen (Rex) Sanders and Terri Levels, who both worked at the Bay Area Air Quality Management District. Sanders served as the Chief Administrative Officer, and Levels served as the Human Resources Officer. In 2023, the District terminated the employment of both Sanders and Levels.

    Sanders and Levels claimed that they were fired in retaliation for complaining about workplace discrimination. Plaintiff’s motion in limine sought to exclude Defendant’s highly credentialed economic expert Kaycea Campbell, Ph.D. from testifying altogether because a portion of her opinion asserted what Plaintiffs contended is a legal conclusion (i.e., that damages should be cut off on the date that Plaintiffs voluntarily withdrew from Defendant’s internal grievance process).

    Economics Expert Witness

    Kaycea Campbell holds a master’s degree and Ph.D. in economics, and has worked, consulted, taught, and published in this field for over two decades.

    Get the full story on challenges to Kaycea Campbell’s expert opinions and testimony with an in-depth Challenge Study.

    Discussion by the Court

    Plaintiffs did not challenge Campbell’s qualifications or the reliability of her testimony under Rule 702, but instead challenged her use of the date of Plaintiffs’ withdrawal from the internal grievance appeals process as a cut-off for damages on the basis that this is a legal conclusion.

    However, Campbell may properly testify that, in her opinion, the Employment Development Department (EDD) requirements for unemployment claims are relevant in order to assess whether damages had been mitigated, and that those requirements involve pursuit of the appeals.

    Campbell need not be an HR expert to state that, from an economic perspective, the EDD’s guidance is probative of the industry standard, and may then provide the jury with a damages calculation based on applying the EDD’s standard.

    Held

    The Court denied Plaintiffs’ motion to exclude the testimony of Defendant’s economic expert Kaycea Campbell.

    Key Takeaway

    Campbell’s limited opinion about Plaintiffs’ claimed damages is admissible because she properly makes an expert assessment as to the relevant damages cut-off dates.

    Case Details:

    Case Caption: Sanders V. Bay Area Air Quality Management District
    Docket Number: 3:23cv4416
    Court Name: United States District Court, California Northern
    Order Date: February 03, 2026
  • Economic Expert’s Opinions on Property Valuation Admitted in Cook County Tax Sale Case

    Economic Expert’s Opinions on Property Valuation Admitted in Cook County Tax Sale Case

    Cook County ran an annual property tax sale targeting homeowners behind on property taxes. When taxes went unpaid, the County obtained court orders to sell tax liens on delinquent properties. Private tax buyers then paid the outstanding taxes in exchange for collecting repayment, plus interest, from property owners. If the owners didn’t repay within about 30 months, buyers could petition for a tax deed and take ownership.

    Michelle Kidd and Goyce H. Rates, two homeowners who lost their properties through this system, sued alongside two advocacy groups, Southwest Organizing Project (SWOP) and Palenque LSNA. They alleged the County’s tax sale process amounted to unconstitutional takings, excessive fines, and due process violations. Their homes, lost for debts under $10,000, were valued by the County between $166,000 and $389,000. Yet neither homeowner received compensation for the equity lost.

    As part of the litigation, the Plaintiffs introduced Dr. William G. Hamm, an economist who supported the reliability of Cook County’s mass appraisal system to estimate market values. The Defendants countered with Ron DeVries, a real estate expert who challenged that approach. Both sides moved to exclude the other’s expert.

    Economic Valuation Expert Witness

    William G. Hamm is a professional economist and a Managing Director of Berkeley Research Group, LLC (“BRG”), an expert services and economics consulting firm headquartered in Emeryville, California.

    Hamm has a BA from Dartmouth College and a PhD in economics from the University of Michigan.

    Get the full story on challenges to William G. Hamm’s expert opinions and testimony with an in-depth Challenge Study.  

    Real Estate Valuation Expert Witness

    Ron DeVries‘ valuation experience includes industrial, retail, office, hotel, multi-family (including FNMA/Freddie, HUD as well as LIHTC deals), and residential subdivisions for uses ranging from due diligence and financing to review appraisal.

    DeVries is a frequent speaker at the Chicago Real Estate Council, the Chicagoland Apartment Association as well as private events for clients. He has testified as an expert witness in a variety of matters. DeVries is past national Chair of Education for the Appraisal Institute and previously served on the Appraisal Institute’s Board of Directors, and numerous committees.  

    Want to know more about the challenges Ron DeVries has faced? Get the full details with our Challenge Study report.  

    Discussion by the Court

    William G. Hamm (Plaintiffs’ Expert)

    Qualifications

    The Court found William G. Hamm qualified to testify. He is a professional economist and Managing Director at Berkeley Research Group with a PhD in economics. His experience includes building models to assess the market value of mortgage-related assets. Though not a licensed appraiser, the Court ruled that this does not disqualify him from evaluating Cook County’s mass appraisal system. His qualifications allow him to speak on complex modeling used to estimate real estate value.

    Reliability

    Hamm’s methodology involved analyzing how Cook County assesses property values using its Computer Assisted Mass Appraisal (CAMA) system. He reviewed public data, used certified Board of Review assessments, and calculated lost equity across a sample of properties. He acknowledged imperfections in the data and proposed interpolation to improve accuracy. The Court concluded that his methods were sound, especially given the lack of alternative sale data, and ruled that criticisms of his data sources go to weight, not admissibility.

    Ron DeVries (Defendants’ Expert)

    Qualifications

    The Court found DeVries qualified as an expert. He is a licensed real estate appraiser with decades of experience in property valuation. While he lacks experience in mass appraisal modeling, he is qualified to critique how accurately Cook County’s assessments reflect market value based on his appraisal experience.

    Reliability

    DeVries relied largely on his own professional knowledge to evaluate weaknesses in the County’s system, such as infrequent assessments and a lack of individualized property inspections. Although his report lacked citations to specific county documents, the Court found this appropriate for the nature of his testimony. The Court held that any gaps in his review go to credibility, not admissibility.

    Held

    The Court denied the Defendants’ motion to exclude William G. Hamm, finding his economic expertise and valuation methods reliable and admissible.

    The Court also denied the Plaintiffs’ motion to exclude Ron DeVries, holding his appraisal-based critique of Cook County’s assessments was qualified and relevant under Rule 702.

    Key Takeaway:

    The Court admitted both expert witnesses, ruling that Dr. William G. Hamm’s economic modeling and Ron DeVries’s appraisal-based critique were sufficiently qualified and reliable. Their testimony will play a central role in evaluating the constitutionality of Cook County’s tax sale system.

    Case Details

    Case Caption: Kidd v. Pappas
    Docket Number: 1:22cv7061
    Court Name: United States District Court for the Northern District of Illinois, Eastern Division
    Order Date: July 07, 2025