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 [...]
What has your financial expert published? Make sure you know.
If you want a lesson on how an expert can be “hoisted on his own petard,” look for the complete digest and the court’s opinion of Nelson v. Walnut Investment Partners, Ltd., 2011 WL 2711318 (S.D. Ohio)(July 13, 2011) to be posted soon at BVLaw. What happened? Opposing counsel know that an expert’s published articles and statements [...]
Majority rule on goodwill in divorce is ‘mistaken’
Nearly a year ago, the Wisconsin Court of Appeals broke new ground in divorce law when it held that all the saleable personal goodwill in a professional practice, as evidenced by a non-compete agreement, is a divisible marital asset. (See BVWire #96-2) The husband appealed, and in McReath v. McReath, 2011 WL 2706249 (July 12, [...]
BVLaw’s legal editor comments on leap in business valuation litigation decisions this year
BVLaw’s own Sherrye Henry comments that the number of material legal cases decided on matters of business valuation has been increasing dramatically—anecdotally as much as 50% over a year ago. Partially, the increase has occurred because valuation issues are considered in more areas of the bar. So, “I attribute some of the increase in valuation cases [...]
Judge Morrison derives his own value in US Tax Court FLP case
In Estate of Giustina v. Commissioner, T.C. Memo. 2011-141 (June 22, 2011), the estate reported its 41.1% limited partnership (LP) interest in a family owned, timberland holding company at just over $12.6 million; the IRS said it was worth closer to $36 million and assessed a penalty of over $2.5 million. In finding that the “correct” [...]
New case abstracts added to BVLaw recently
Among the cases the legal editors are reviewing now are the following. The BVLaw digests reflect all cases where appellate level or precedential decisions were decided on a matter of financial analysis or business valuation. Monaco v. Stewart, 2011 WL 1330851 (Ky. App.)(April 8, 2011)(unpub.) Kentucky court finds personal goodwill value of the husband’s 25% [...]
Sample new case abstracts added to BVLaw
Now available on BVLaw: Palmerino v. Palmerino, 2011 WL 1450359 (Mass. App. Ct.)(April 15, 2011)(unpub.) Massachusetts court precludes discounts in valuing marital business in divorce, and says that while income approach is preferred, net asset value may be appropriate in the absence of determinable market value. Experts: David Gannett (joint expert); Felix Betro (husband’s expert) Judge: [...]
A sample of case digests recently added to BVLaw
Now at BVLaw: Ritchie v. Rupe, 2011 WL 206845 (Neb. App.)(Jan. 25, 2011) Texas Court of Appeals affirmed availability of forced buy-out remedy for shareholder oppression and held that when minority oppressed shareholder wants to sell, the fair market value standard (including discounts) is appropriate. Experts: Donald Latin, Richard Latin, and Alan Tolmas (minority shareholder) [...]
Plaintiff claims expert with no industry experience cannot rebut loss of use damages
Level 3 Communications v. Floyd, 2011 WL 11000078 (M.D. Tenn.)(March 22, 2011) While excavating a residential subdivision, a general contractor severed a traffic-bearing cable belonging to the plaintiff, a telecommunications provider. Fortunately, the plaintiff had invested in spare, emergency capacity on which it could “roll” customer call traffic until repairs could restore the damaged cable. [...]
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