Weigel Broadcasting v. Smith

BVLaw
Full Text of Court Cases
December 12, 1996
4833 Television Broadcasting Stations
515120 Television Broadcasting
dissenting shareholder
fair value, discounted cash flow (DCF), market approach, minority interest, marketability

Weigel Broadcasting v. Smith
289 Ill. App. 3d 602, 682 N.E.2d 745, 1996 Ill. App. LEXIS 941
US
State Court
Illinois
Court of Appeals
John McCluskey (for plaintiff) <br> Thomas Buono (for defendant)
Wolfson

Summary

At issue is the meaning of the words "fair value" in the Business Corporation Act.

See Also

More Cases ... Shareholder Dispute: Weigel Broadcasting

This case was reopened on the dissenter's opinion that the trial court discounted the value of their shares due to their illiquidity and minority, thereby equating fair value with market value and erring as a matter of law.

Court Cites Factors in Revenue Ruling 59-60 to Determine 'Fair Value'; Minority and Marketability Discounts Left to Trial Court's Discretion

The issue in this case is the "fair value" to be assigned to the dissenting shareholders' common stock in Weigel, a company engaged in the business of commercial television broadcasting.