1. Reading… Writing…. Arithmetic….. Simplify to Quantify Bernard F. Pettingill, Jr., PhD Palm Beach Gardens, FL October 2010 Las Vegas 1

2. INTRODUCTION 2

3. Background Contact Points Terms of Art Presentation - Putting It All TogetherOutline 3

4. BUTCHERBAKER CANDLESTICK- MAKER JACKJILL Juror Profile 4

5. 5 Potential Jurors Keep Estate Tax Get Rid of Estate Tax

6. Banker Engineer Nurse Practitioner Arms Crossed / Legs Age Factor Note Takers Sleeper Questions from Jurors 6Jury

7. New Orleans Military HS Catholic / Ivy League College / Ph.D. England (Foreign) Professor (Medical School - 4 yrs) Articles Three Kids - Teacher / Empathy Organizations Court TV / Congress Two Grandkids 7Hooks

8. 8 CREDIBILITY

9. Jury Awareness Posture / Clothes / Watch / Car / Truck Body Language - Rocket Clemens; McGuire Out of the Box Permission 9

10. Life Expectancy / Work Life Expectancy Inflation Measures - (Local News Stories) Medflation Interest Rates (IRR) Consumption Expenses Replacement Services at Home Paradox of Thrift Economic Terms 10

11. CPI Typical Market Basket 95 Locations Twice / Month 211 Consumer Goods Average Prices 11

12. CPI - cont. 1. Food & Beverages 2. Housing 3. Apparel 4. Transportation 5. Recreation 6. Education & Communication 7. Other Goods & Services 8. MEDICAL CARE 12

13. 13 LOCAL NEWSPAPER

14. GIGO PRN QD / BID / TID DUCES TECUM CETERIS PARIBUS SWAGAbbreviations 14

15. OLD INDICATORS AUTO HOUSING RETAILForecasting 15

16. NEW INDICATORS WAL-MART STARBUCKS APPLE NETFLIX PAWN SHOPS ANIMAL RESCUE LEAGUE McDONALDS DOLLAR STORE Forecasting - cont. 16

17. Rates Discounting to PV - Recent Historic Rate Alaskan - Total Offset Nominal Rate / Average Rate - 25 yrs 17

18. JUNK DOWN MUNIS DOWN CORPORATE DOWN TREASURIES 18 Discount Rates

19. Verdict Bartow 3/2009 19 $65 M

20. Life Expectancy Census Data - 2010 Optimal Care - Based on L.E. Census Data - 2010 Optimal Care - Based on L.E. 20

21. LIFE EXPECTANCY LESSON 1 = 2.9 = 1.7 21

22. Classification of Economists Labor Public Policy Financial Labor Public Policy Financial Agricultural Behavioral Health/Medical Agricultural Behavioral Health/Medical 22

23. 23 Not The Same

24. 24

25. ENGLAND, CANADA & SWEDEN INSURE 30+ MILLION PEOPLE - H.R. 3200 AMERICAS AFFORDABLE HEALTH CHOICES ACT ELECTRONIC MEDICAL RECORDS Nationalized Health Care 25

26. New Technology Waste, Inefficiency & Fraud Drug Company R&D Aging Population New Technology Waste, Inefficiency & Fraud Drug Company R&D Aging Population Reasons for Cost Increases 26

27. ELECTIVE SURGERY WAITING LIST - HERNIA REPAIR RENAL DIALYSIS 55+ Yr Old, GREAT BRITAIN – DENIED…. DEAD Health Care - DILEMMA 27

28. SIXTY YEAR OLD MALE POSTAL WORKER SINGLE MOTHER OF FOUR CHILDREN EIGHTEEN YEAR OLD NEVER WORKED RETIRED PALM BEACHER Organ Replacement - DILEMMA 28

29. MEDICAL INFLATION RATES Current (NOW) = 3.5% Recent (10Yrs) = 4.0% Historic (25Yrs) = 5.0% LESSON 2 29

30. Medical Care Growth Rates 30

31. YEAR 1995 2000 2004 2006 2008 2010 YEAR 1995 2000 2004 2006 2008 2010 MEDICAL 5.1% 4.3% 4.3% 4.2% 3.8% 3.5% MEDICAL 5.1% 4.3% 4.3% 4.2% 3.8% 3.5% 31

32. AMERICAS AFFORDABLE HEALTH CHOICES ACT HR 3200 32 ?

33. 1. Therapists / Nurses 2. Treating / Evaluating M.D.s 3. Continuation of Care Planner / Rehab Expert 4. Economist 1. Therapists / Nurses 2. Treating / Evaluating M.D.s 3. Continuation of Care Planner / Rehab Expert 4. Economist Sequence of Experts 33

34. 34

35. Continuation of Care Life Care Plan 35

36. Routine M.D. Visits Therapies ADLs Diagnostics Orthopedic Equipment Supplies Routine M.D. Visits Therapies ADLs Diagnostics Orthopedic Equipment Supplies Categories of Need Attendant CareAttendant Care 36

37. Boston Vs New Haven Large Med-Schools Well Informed M.D.s Same Region Country No Difference in Socio-Economic Status Boston Vs New Haven Large Med-Schools Well Informed M.D.s Same Region Country No Difference in Socio-Economic Status Treatment Patterns 37

38. White Female Age 2.0 Life Expectancy = 79.9 years 24 Hour Nursing Care (HOME) $30.50/Hour/LPN Discount Factor = 4.0% Example 38

39. 39

40. Current (NOW) = 3.5% Recent (10Yrs) = 4.0% Historic (25Yrs) = 5.0% 40 MEDICAL INFLATION

41. Current: Growth Rate = 3.5% Present Value = $17.5m Recent: Growth Rate = 4.0% Present Value = $21.2m Historic: Growth Rate = 5.0% Present Value = $31.1M 41RESULTS

42. 42 INTEGRITY

43. Recent Life Expectancy Tables Medical vs. General Inflation Sample - Goods / Services 1940, 50, 60, 70, 80, 90s Recent Life Expectancy Tables Medical vs. General Inflation Sample - Goods / Services 1940, 50, 60, 70, 80, 90s Trial Charts 43

44. 44

45. 45

46. 46

47. Presentation Earning Capacity - Cistern Present Value - Car Loan Court Reporter Interruptions 9/11 - Security Jack Pot Justice / Home Cooking Earning Capacity - Cistern Present Value - Car Loan Court Reporter Interruptions 9/11 - Security Jack Pot Justice / Home Cooking 47

48. Verdict Fort Meyers - John Romano, Esq. Florida 12/2009 $44.9 M 48

49. Verdict Miami, FL 4/2010 $11.6 M 49

50. Verdict Florida 9/2010 $8.2 M 50

51. Verdict Florida 9/2010 $21.6 M 51

52. Verdict Little Rock, AR 9/2010 $20.1 M 52

53. Verdict - Ford Jackson, MS 9/2010 $131 M 53

54. Summary 3 Lessons LE MEDFLATION LESS IS MORE LAW OF LARGE NUMBERS 54

55. CONSULTING ECONOMIST PHONE (561) 622-0330 CELL (561) 346-7828 FAX (561) 624-2854 TOLL FREE (800) 662-0330 CONSULTING ECONOMIST PHONE (561) 622-0330 CELL (561) 346-7828 FAX (561) 624-2854 TOLL FREE (800) 662-0330 #93 Sandbourne Lane P.G.A. NATIONAL PALM BEACH GARDENS, FL 33418 E-mail: biffpett@gate.net BERNARD F. PETTINGILL, PH.D. 55

56. Homework - CSI Financial Records Tax Returns - Official IRS Records - Alignment, Dates, SS#, Signatures, Copies, Income / Expense Flow Past Meds Minimal Darden - (doc location: G drive) - CSI 56