PRCM Advisers LLC v. Two Harbors Investment Corp.
1:20-cv-05649
S.D.N.Y.Jun 11, 2025Background
- The dispute is between PRCM Advisers LLC ("Pine River"), an external manager, and Two Harbors Investment Corp., a real estate investment trust ("REIT"), over alleged misappropriation of intellectual property (IP) and damages following termination of a management agreement.
- Both parties filed cross-motions for summary judgment and competing Daubert motions to exclude certain expert testimony.
- Magistrate Judge Moses issued an opinion and order granting in part and denying in part these Daubert motions, excluding certain expert opinions on damages and IP ownership but allowing others.
- Two Harbors objected to Judge Moses’s decision, specifically contesting the admissibility of certain damages estimates and expert opinions.
- The District Judge, Kaplan, reviewed these objections for clear error under the non-dispositive motion standard and mostly upheld Judge Moses's rulings, except for excluding one damages estimate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of Dr. Vellturo’s damages estimates (Opinions 1, 2, 2a) | Opinions 1 and 2a are based on admissible expert foundations | All these estimates rely on excluded, inadmissible opinions | Opinions 1 and 2a not excluded; only estimate based on $686M unjust enrichment (Opinion 2) excluded |
| Admissibility of Vellturo’s reasonable royalty estimates (Opinions 3, 3a) | Can be derived using admissible inputs and reliable methods | Derivative of excluded damages estimates; thus inadmissible | Opinion 3 can be offered if recalculated with allowed input; Opinion 3a not excluded |
| Admissibility of O’Laughlen and Slosser’s expert opinions | Objections go to weight, not admissibility | Opinions are speculative and unsupported | Objections overruled; issues go to weight and can be addressed on cross-examination, not grounds for exclusion |
| Confirmation or alteration of the magistrate’s order | No argument; seek adherence to existing Order | Seek confirmation or broader exclusion of opinions | No confirmation required; Order stands as written |
Key Cases Cited
(None included with official reporter citations in the opinion excerpt. Citations provided used Westlaw/Lexis only.)