Bright-Line Rule Barring Discounts Is Inappropriate

Business Valuation Update BVLaw
Legal and Court Case Update
August 5, 2002

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6719 Offices of Holding Companies, NEC
551112 Offices of Other Holding Companies
shareholder dissent/oppression
fair value, discount for lack of marketability (DLOM), market approach, c corporation, s corporation
Norton Co v. Smyth
112 Wn. App. 865, 51 P.3d 159, 2002 Wash. App. LEXIS 1841
US
State Court
Washington
Court of Appeals
Arthur Andersen (for plaintiff) <br> Robert Duffy (for defendant)
Kennedy

Summary

The Washington Court of Appeals reversed a trial court’s bright-line rule prohibiting discounts for lack of marketability and built-in capital gains taxes when determining fair value in a dissenters’ rights action.

See Also

Norton Co v. Smyth

Full Text of Court Cases
August 5, 2002

The issue, in this case of first impression in Washington, was the propriety of discounts for lack of marketability and built-in capital gains in a dissenters' rights proceeding.