Why Did a CPA and CFO With 30 Years Experience Go to Law School?

Overview

I’m a CPA and have been a Controller/CFO for over 35 years. I’ve learned a lot about accounting, tax, budgeting and M&A, valuations and damage calculations as an expert witness. I work on a huge variety of cases – everything from the largest personal bankruptcy in US history ($500 million at the time) to forensic and some deal with IP or divorce. I’ve been on 6 small public company boards – have raised money, done IPOs (or DPOs) and done over 100 reviews/audits. I’ve worked with clients in many industries and various countries around the world. Recently an engagement came from the Supreme Court (of Sri Lanka). I was appointed as an Accounting referee for a court and have published various articles and presented on many topics.

So why did I choose to go to law school in recent years? Some was personal – concern over my career, and the state of affairs in the US and the world. And some was business – I thought I had already learned a lot about the law as a result of being an expert witness and going through the litigation process multiple times. This would potentially give me a head-start in furthering my education.

I took a sample law school multiple choice test and did ok without having any formal legal training, other than a business law class years ago. After my mother died and I had a son I decided to take the plunge as the next chapter in my life. I underestimated some of the workload but am now in the homestretch, and will also take the Bar exam next year.

UPDATE 2025: I am now Robert Bates, CPA, Esq. I completed my JD, passed the MPRE and Moral Character determination, passed the California Bar Exam, and was admitted to practice. That “homestretch” is now complete.

New Skills Gained in Law School That Make Me a Better Expert Witness

There have been several skills that I have honed – reading/writing, analytical thinking, looking at both sides of disputes, how to issue spot. I believed it would help my credibility as an expert to also be a JD. Now as a CPA, Esq., it does.

Do I need to know rule against perpetuities or reciprocal negative easement? Probably not after the Bar exam. But I did get the highest score in Contracts and I believe in Property – so I must have understood something!

Here is what law school actually added to 35 years as a CFO:

1. Contracts & Remedies – Why Breach of Contract Damages Are Calculated Wrong

In Contracts we learned components of contracts, remedies for broken agreements, oral contracts and damages. As a CFO expert witness, I now draft damage reports that tie directly to California contract remedies law: expectation damages, reliance, restitution, and liquidated damages under Civil Code 1671.

Most CPAs calculate lost profits. I calculate lost profits and explain why they are recoverable under the contract and California law. Attorneys tell me that saves them a motion in limine.

2. Torts, Negligence & Intentional Torts – For Fraud and Business Tort Cases

We learned about negligence and intentional torts, about crimes against the person and property. In my fraud cases – like the retail store M&A fraud case where a $300k revenue store was really $72k – I now frame forensic findings within Civil Code 1709/1710 fraud elements: misrepresentation, knowledge, intent, reliance, damages.

That matters for treble damages under Penal Code 496(c).

3. Wills & Trusts and Community Property – For Business Valuation in Divorce and Estate

I learned Wills & Trusts for the first time. In Community Property we discussed marital assets. This directly applies to my business valuation work when an owner passes away or divorces.

When a business owner dies, I now understand both the accounting (fair market value as of date of death under IRC 2031) and the legal (probate, trust administration, stepped-up basis). In divorce, I understand Pereira vs Van Camp and the need to value goodwill. Being a CPA Esq means I can talk to the estate attorney in their language.

4. Business Associations: Agency, Proxies, and Shareholder Disputes

In Business Associations I expanded my knowledge of proxies, agency and the like. After being on 6 public company boards, this filled in the gaps on fiduciary duties, shareholder oppression, and derivative actions. When I opine on shareholder disputes, I understand the breach of fiduciary duty framework, not just the numbers.

5. Civil Procedure: How Lawsuits Are Supposed to Proceed

In Civil Procedure I learned how lawsuits are supposed to proceed, with jurisdiction, discovery, pleadings etc. This made me a much better expert witness. I now:

• Write reports that comply with CCP 2034.260 expert disclosure requirements
• Draft document requests that actually get POS data, bank statements, and sales tax returns
• Understand Sargon vs Daubert – the California standard for expert admissibility

I have seen experts excluded because their report didn’t meet CCP 2034.270. Mine do.

6. Evidence: Relevance, Hearsay and Objections

Finally, in Evidence we covered relevance, hearsay and objections. As an expert witness, this is gold. I learned:

• How to lay foundation for business records exception (Evidence Code 1271)
• Why my workpapers need to show hearsay vs non-hearsay basis
• How to handle a 402 hearing and keep my opinion in

I now prepare exhibits that are already in admissible form, not just Excel dumps.

7. Professional Responsibility and Constitutional Law

I learned what ethical considerations/disclosures/conflict of interests and various relationships that occur in Professional Responsibility. Likewise I passed the MPRE and Moral Character determination. In Constitutional law we’re learning state vs federal and the branches and individual rights.

This helps me navigate expert conflicts, attorney-client privilege vs work product, and when I am a consulting expert vs testifying expert under Federal Rule 26.

What Have I Learned? How Being a CPA, Esq. Helps My Clients

What have I learned? Law school didn’t replace 35 years as a CFO – it multiplied it.

For attorneys who hire me as an expert witness:
You get a CPA, CVA who understands Civil Procedure, Evidence, and Sargon. My reports are written to survive motion in limine. I can spot legal issues (like that indemnity clause that violates Civil Code 1668) before you do.

For business owners who hire me as fractional CFO:
You get a CFO who can read your lease, your buy-sell agreement, and your loan documents and tell you both the business and legal risk. When you get a term sheet that says “$25,000 deposit toward Transaction Expenses,” I know both the accounting and the legal enforceability.

For valuation clients:
When a business owner passes away, I can coordinate with your estate attorney on date-of-death valuation, Form 706, and buy-sell trigger, because I understand both sides.

I look forward to how all of this knowledge will help me in analyzing cases in the future – and that future is now. I am now accepting expert witness, business valuation, and forensic accounting engagements as Robert Bates, CPA, CVA, Esq.

If you’re an attorney in California looking for a CPA expert witness who is also an attorney, or a business owner looking for a CFO who can actually read the contract, contact me at hpaccounting.com