ShopRite, Inc. v. Gardiner

BVLaw
Full Text of Court Cases
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)
United States
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.
ShopRite, Inc. v. Gardiner
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See Also

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

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.