Netquote Inc. v. Byrd

Filing 225

Netquote Inc. v. Byrd

Doc. 225 Att. 1

1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 vs. BRANDON BYRD, et al., Defendants. ____________________________________________________________ Proceedings before MICHAEL E. HEGARTY, United States Magistrate Judge, United States District Court for the District of Colorado, commencing at 9:44 a.m., April 14, 2008, in the United States Courthouse, Denver, Colorado. ____________________________________________________________ WHEREUPON, THE ELECTRONICALLY RECORDED PROCEEDINGS ARE HEREIN TYPOGRAPHICALLY TRANSCRIBED... ____________________________________________________________ APPEARANCES HEATHER CARSON PERKINS and DANIEL WILLIAMS, Attorneys at Law, appearing for the plaintiff. RYAN ISENBERG, Attorney at Law, appearing for the defendants. ____________________________________________________________ MOTIONS HEARING - PARTIAL IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Case No. 07-cv-00630-DME-MEH ________________________________________________________ NETQUOTE, INC., Plaintiff,

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94 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 thank you. Q (By Mr. Isenberg) All right. I'm handing you what's Q And in fact they specifically say: We assumed -- we,

therefore, assumed a life of seven years, in their report, didn't it? A Q That's correct. And as a consequence of that seven years, you are able

to build up your method to come to your 3.2 times annualized revenue, right? A A seven-year amortization or attrition period is a part

of the process that is used in Exhibit 1, yes. MR. ISENBERG: Judge, may I approach with exhibits -- I'll be nice, I promise. THE COURT: You don't have any choice. (Pause) Yes,

been marked as Defendant's Exhibit 1 for purposes of this hearing. This was included in documents that you received

from NetQuote, is it not? A Q I believe so. All right. And in this document, it was prepared by He reported to you that Paul Ford,

Mr. Shine of NetQuote.

the president of NetQuote, determined that the lifetime value of a sales agent for a national account would be three to three and half years, and that that was far better than what could be expected from a local account. A It is what it says.

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96 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 other factors that, in my professional opinion, moved more -- should be weighted more dramatically, heavily, and thus I didn't classify them as such. They are classified as

MostChoice Not Substantial for purposes of classification. That's not to say that the malicious leads had no impact. Q So is it your testimony that you classified agents that

left where there was a substantial factor as MostChoice Not Substantial? A Q 32 May I have the question again? Sure. agent Is it your testimony that the -- that among the in MostChoice Not Substantial that you have

identified in your report that MostChoice was in fact a substantial factor? A MostChoice was a factor. I don't think it was a

substantial factor in the departure of those particular 32, accounting for some -- on a weighted basis, some 25 percent, 26 percent of the values. Q Now, those 32 accounts had an average life span of just

under seven months, didn't they? A I haven't calculated an average for those particular

accounts. Q That's something that can be derived by looking at

Exhibit 7? A It could be derived from data I have. I don't know

that it would be 7, but probably is included in that data as

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