Louisiana Court of Appeals Disallows a Discount for Trapped-In Capital Gains Taxes and a Reduction in Receivables for Collectability

BVLaw
Court Case Digests
December 29, 2021
5541 Gasoline Service Stations
447110 Gasoline Stations with Convenience Stores
shareholder dissent/oppression
fair value, shareholder oppression, discount, fair market value (FMV), minority interest, real estate, accounts receivable, capital gains, balance sheet

ShopRite, Inc. v. Gardiner
2021 La. App. LEXIS 2081; 21-371 (La.App. 3 Cir. 12/29/21)
US
State Court
Louisiana
Court of Appeals
D. Kent Savoie, Candyce G. Perret, and Charles G. Fitzgerald

Summary

In determining the fair value of a minority interest in stock sold back to the companies in a shareholder oppression assertion, the Louisiana Court of Appeals rejected a discount for trapped-in capital gains tax since the companies had no intention of selling the properties owned. The appeals court also disallowed a reduction in fair value related to the value of affiliated accounts receivable, noting that there was no evidence that the receivables were uncollectible.

See Also

ShopRite, Inc. v. Gardiner

In determining the fair value of a minority interest in stock sold back to the companies in a shareholder oppression assertion, the Louisiana Court of Appeals rejected a discount for trapped-in capital gains tax since the companies had no intention of selling the properties owned. The appeals court also disallowed a reduction in fair value related to the value of affiliated accounts receivable, noting that there was no evidence that the receivables were uncollectible.