Recreational Vehicle Expert’s Valuation Determination Complies with Rule 702
Posted on April 3, 2025 by Expert Witness Profiler
Plaintiff Jason Greene purchased a recreational vehicle (“RV”) from Defendant Thor Motor Coach, Inc. (“Thor”). The purchase included a 12 month / 15,000 mile limited warranty (the “Limited Warranty”). After purchasing the RV, Greene encountered issues with the RV that led him to seek repairs on several occasions. Some issues remained even after the attempted repairs. Greene thus sued Thor for violation of the Magnuson Moss Warranty Act (“MMWA”), breach of express warranty, breach of implied warranty, violation of the Indiana Deceptive Consumer Sales Act (“IDCSA”) and violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law.
Thor seeks to exclude the proposed valuation opinions of Greene’s proffered expert, Mr. Dennis Bailey, arguing that Bailey’s opinion is unreliable.
Recreational Vehicle Expert Witness
Dennis Bailey had a self-owned recreational vehicle business. He has been directly involved in the daily decisions of retail sales (trade in values-new and used manufacturer purchases) wholesale sales (buying and selling), customer service (determination of warrantable defect for submission to the manufacturer-solutions for repair and actual repair), retail and wholesale parts (determination parts pricing-decisions on what specific inventory to purchase and how much). Bailey has attended technical schools such as Norcold, Dometic, Lippert leveling and slide out certified and is RVIA certified.
Bailey has experience in appraisals since 1980’s. Other areas of designated certification are Certified Infrared Thermographer through Flir and LP certified gas. Bailey is an experienced appraiser specializing in recreational vehicles. He has conducted over 1,000 specialized RV appraisals and estimates. He is an independent Investigator.
Discussion by the Court
Thor concedes that Bailey’s experience “likely endows Bailey with sufficient technical knowledge to render opinions about the presence of defects in a motorhome like the RV” but argues that Bailey’s valuation opinion is inadmissible because it is mere ipse dixit and fails to meet the reliability standards required under Fed. R. Evid. 702 and Daubert.
Greene purchased the RV for $249,901.59. In Bailey’s report, he opines that, after considering the purported defects, the fair market value of the RV at the time it was purchased was $100,000.00.
Bailey’s report details his findings related to purported defects in Greene’s RV. Bailey lists 24 variables that can affect an RV’s value. His report also refers to the National Automobile Dealer Association (“NADA”) guidebook, which he describes as the “generally accepted industry standard for guideline value only. It is not the Bible of the true value as it strictly [sic] a guide only.”
Thor argues that, when Bailey was deposed and had to elaborate on those 24 variables and describe his methodology, Bailey’s conclusions ultimately rest on Bailey’s “say-so” and amounts to inadmissible ipse dixit. The Court agrees with Thor that, at times Bailey’s testimony suggests that his conclusions are speculative.
Market Supply and Demand
However, at Bailey’s deposition, he does provide some additional explanation for his proffered opinions. He testified that several of the 24 variables did not factor into his valuation determination because they were not relevant. As mentioned, one variable Bailey did consider was market supply and demand. When questioned how he evaluated that variable, he testified that he’s been in the business for over “45 years” that he has “seen units” and “used to work at one of the biggest dealerships and we had those. I know about them units. I know about the RVs and which ones sell and which ones don’t.”
Insurability Risk
Another variable Bailey considered was insurability risk. Bailey testified that he did not consult any insurance companies in reaching his determination, but that in his experience he has “dealt with insurance companies. I have dealt with them when I did work for the dealers and stuff selling trailers. I know that they won’t insure a lot of these people if they find out that they have damage to them.”
Economic Cost
When discussing the economic cost—another valuation factor—Bailey testified that he considered the cost to fuel the RV given the present cost of $6 a gallon for gas and $7 a gallon for diesel, and the cost for bringing the RV back and forth to the dealership to get it fixed.
Prohibited Use on Highways
When discussing another factor—prohibited use on highways—Bailey elaborated that it is his opinion that the RV’s alleged defects to the electrical system make it dangerous to take on the highways.
Such a conclusion does not strike the Court as mere ipse dixit, particularly because Thor does not challenge the admissibility of Bailey’s opinions on the existence of the alleged defects. Bailey also testified that he considered whether the RV could be financed based on his experience selling units and trying to get customers financing. While Bailey was unable to provide itemized deductions for the factors he considered, this Court has held that itemized deductions are not required.
In conclusion, Greene’s evidence suggests that Bailey’s testimony is the product of reliable principles and methods, and his opinion reflects a reliable application of the principles and methods to the fact of the case under Rule 702.
Held
The Court denied Thor’s motion to exclude the valuation opinion of Greene’s expert witness, Dennis Bailey.
Key Takeaway:
The experienced appraiser’s opinion is sufficient if the opinion consists of an explanation of the methodologies and principles referenced, and the conclusions are not solely based on subjective opinion or speculation, as appraisals are not an exact science that can be mechanically scrutinized.
Case Details:
| Case Caption: | Greene V. Thor Motor Coach, Inc. |
| Docket Number: | 3:22cv1011 |
| Court: | United States District Court, Indiana Northern |
| Order Date: | March 28, 202 |
