Book Value, Not Market Value, Determines Essential Reliance Damages

Business Valuation UpdateVol. 11 No. 10
Legal and Court Case Update
October 2005
6036 Savings institutions, Not Federally Chartered
522120 Savings Institutions
damages, breach of contract, book value, market value

American Capital Corporation v. United States
2006 U.S. Claims LEXIS 150
May 31, 2005
Federal Court
United States Court of Federal Claims
Andrew Charles Gilbert, Charles J. Cooper, Hamish P. M. Hume, Jane M. E. Peterson, Jeffrey Hughes, Jeffrey T. Infelise, Michael W. Kirk, Vincent J. Colatriano, William F. Ryan
Prof. Randall S. Kroszner (for United States)


In this extensive case, one of the myriad issues was whether Transcapital Financial Corporation’s essential reliance interest should be determined by book value or market value.

See Also

American Capital Corporation v. United States

In this extensive case arising from the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act, Pub. L. No. 101-73, 103 Stat. 183 (1989) (FIRREA) in response to the savings and loan crisis of the 80's, involving a breach of contract ...