Court Snubs Lost Earnings Analysis Based on ‘Incomplete Use’ of Data

Business Valuation UpdateVol. 22 No. 6
Legal and Court Case Update
June 2016

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8011 Offices and Clinics of Doctors of Medicine
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economic damages & lost profits
expert testimony, income approach, mergers and acquisitions (M&A), asset approach, capitalization of earnings, fair market value (FMV), market approach, comparable companies method, lost income
Bocek v. JGA Assocs., LLC
2016 U.S. Dist. LEXIS 38259
March 23, 2016
US
Federal Court
Virginia
United States District Court
Joseph Estabrook (plaintiff); Hempstead & Company (defendant)
Cacheris

Summary

Court rejects expert’s loss of business opportunity and lost earnings calculations, finding capitalization of earnings method is inappropriate for valuing company with unstable earnings and lost salary projections are based on “incomplete use” of data.

See Also

Bocek v. JGA Assocs., LLC

Full Text of Court Cases
March 23, 2016

Court rejects expert’s loss of business opportunity and lost earnings calculations, finding capitalization of earnings method is inappropriate for valuing company with unstable earnings and lost salary projections are based on “incomplete use” of data.

This article also appears in:
Business Valuation UpdateVol. 22 No. 6
The Comprehensive Guide to Economic Damages, Seventh Edition