New case digests and court opinions added to BVLaw
Here’s a sampling of cases we’ve added to BVLaw in the last month: U.S. Bank, N.A. v. Cold Spring Granite Co., 788 N.W.2d 160; 2010 Minn. App. LEXIS 142 (Sept. 14, 2010) Appellate court affirms that, absent showing of fraud, a board’s determination of fair value in the context of a reverse stock split is [...]
Latest ‘Bad Facts’ FLP Case Emphasizes Poor Planning
Estate of Liljestrand v. Commissioner, T.C. Memo 2011-259; 2011 Tax Ct. Memo LEXIS 251 (Nov. 2, 2011) Here’s yet another case that proves the simple point that hiring an accredited appraiser can make a huge difference in estate planning. After retiring in 1978, a doctor exchanged his interest in a Hawaiian hospital for several real [...]
Despite ‘egregious’ theft of trade secrets, damages hard to prove
Pure Power Boot Camp v. Warrior Fitness Boot Camp, 2011 WL 4035751 (S.D. N.Y.) (Sept. 12, 2011) While working as a Wall Street trader, the plaintiff got inspired to start her own physical fitness studio, based on a military boot camp. She visited Fort Knox to research the design, and after investing substantial time and [...]
Court approves expert’s use of “rules of thumb”
Most courts have expected expert witnesses to provide documents “comparables” when calculating the value of a business in dispute. So it’s noteworthy that a source which averages “rules of thumb” multiples by industry has just been accepted in a recent California divorce. In the case, a joint expert valued the husband’s physical therapy practice [...]
New digests and court documents recently added to BVLaw
Here’s a sampling of new cases where issues of business valuation, damages calculations, or other analyses by financial experts and business appraisers was crucial to the outcome. The digests and court opinions of all such cases are all available at BVLaw. In re Southern Peru Copper Corp., 2011 WL 4907799 (Del. Ch.)(Oct. 15, 2011) Delaware [...]
A sampling of new case digests and court opinions added to BVLaw
These are some of the new cases involving testimony and reports by financial experts included in the BVLaw database: Howard v. United States, 2011 WL 3796723 (C.A.9 (Wash.))(Aug. 29, 2011) Ninth circuit upholds finding that a non-competition agreement effectively conveyed a dentist’s personal goodwill to his C corporation, such that it became the corporation’s asset [...]
Is the ‘25% rule of thumb’ still alive and well?
The Federal Circuit’s decision in Uniloc v. Microsoft to “abolish” the 25% rule of thumb in patent litigation appears to be final and fatal, according to most authorities (including the BVWire). But were reports of the rule’s “death by Daubert” premature? “Despite this holding,” says attorney Andrew S. Dallmann (Jeffer Mangels Butler & Mitchell), in [...]
FLPs with passive assets are still the most vulnerable
Recent cases concerning the viability of taxpayers’ transfers to family limited partnerships (FLPs) as “bona fide” for legitimate, non-tax business purposes have been fairly successful in the Tax Court of late—even when the transfers have involved assets that don’t require active management. Estate of Black, for instance, upheld an FLP in which the partners held the [...]
Recent case law added to BVLaw
New cases where the value of private businesses, or damages, are beling litigated have been added to the BVLaw database this week. A sampling includes: Lucent Technologies, Inc. v. Microsoft Corp., 2011 WL 2728317 (S.D. Calif.)(July 13, 2011) Federal district court precludes expert’s patent infringement damages under Uniloc standard for failing 1) to establish the [...]
A sampling of recent case digests added to BVLaw
These are a sampling of new cases digested for BVLaw. These are cases where calculations of business value were essential to appellate level decision. Keil v. Keil, 2011 WL 2150009 (N.Y.A.D. 3 Dept.)(June 2, 2011) Appellate court finds “key man” discount duplicative when trial court already adopted a value that accounted for the business’s dependency [...]
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