A sampling of recent case digests added to BVLaw

These are a sampling of new cases digested for BVLaw.  These are cases where calculations of business value were essential to appellate level decision.

Keil v. Keil, 2011 WL 2150009 (N.Y.A.D. 3 Dept.)(June 2, 2011)

Appellate court finds “key man” discount duplicative when trial court already adopted a value that accounted for the business’s dependency on its sole owner.

Experts:  unnamed

Judge:  Spain

State/Jurisdiction: New York

Court: Appellate

Type of case:  marital dissolution

Kapadia v. Kapadia, 2011WL 1849407 (Ohio App. 8 Dist.)(May 12, 2011)

Trial court did not err by accepting expert value that compared wife’s interest in chain of local sandwich stores to those found in mall and airport food courts; and by rejecting expert who valued it based on national franchise comparables.

Experts:  Robert Turner (wife); Robert Greenwald (husband)

Judge:  Gallagher

State/Jurisdiction: Ohio

Court: Appellate

Type of case:  marital dissolution

K.B.R. v. E.P.R. 2011 WL 2183858 (Mass. App. Ct.)(unpub.)(June 7, 2011)

Trial court accepts value of lending corporation based on “weighted average collectability” of outstanding loans, adjusted downward for economic uncertainties and default status of loans.

Experts:  unnamed

Judge:  Fecteau

State/Jurisdiction: Mass.

Court: Appellate

Type of case:  marital dissolution

Mondis Technology, Ltd. v. LG Electronics, Inc., 2011 WL 2417367 (E.D. Tex.)(June 14, 2011)

Federal district court permits patent damages expert to base running royalty calculations on market value of accused products, when “economic justification” supported application of entire market value rule.

Experts: Stephen Magee

Judge:  Everingham

State/Jurisdiction:   federal/Texas

Court: U.S. District Court

Type of case: IP

Spectralytics, Inc. v. Cordis Corporation, 2011 WL __________ (Fed. Cir.)(June 13, 2011)

Federal Circuit court affirms 5% royalty rate damages for infringement of patented medical device, based on expert evidence that showed a 20% rate would have been reasonable in light of economic and competitive circumstances.

Experts: Julie Davis

Judge:  Newman

State/Jurisdiction:  federal

Court: U.S. Court of Appeals for the Federal Circuit

Type of case:  IP

Nelson v. Walnut Investment Partners, LP, 2011 WL 2711318 (S.D. Ohio)(July 13, 2011)

Bankruptcy court denies Daubert motion and grants summary judgment based largely on expert insolvency analysis, despite “professional” disagreement on data used to calculate small stock premium, cost of debt, and company-specific risk premium.

Experts: Robert Ferguson (plaintiff); Jeffrey Risius (defendants)

Judge:  Spiegel

State/Jurisdiction: federal/Ohio

Court: U.S. district court

Type of case:  bankruptcy

Dawkins v. Hickman Family Corp., 2011 WL 2436537 (N.D. Miss.)(June 13, 2011)

Determination of fair value under dissenting shareholder statute in Mississippi includes dollar-for-dollar discount for built-in capital gains tax liability in case of private asset-holding partnership.

Experts: James Koerber

Judge:  Aycock

State/Jurisdiction: federal/Mississippi

Court: U.S. District Court

Type of case:  dissenting s/h

Estate of Cohen v. Booth Computers, 2011 WL 2694288 (N.J. Super)(July 13, 2011)

Appellate court rules that a buy-sell provision at book value is not unconscionable and confirms buy-out of deceased partner, despite leaving remaining partner with a fair market value nearly 60 times greater than buy-out price.

Experts: Dennis Kremer (plaintiff); Sam Rosenfarb (defendant)

Judge:  Carchman

State/Jurisdiction: New Jersey

Court: appellate court

Type of case: Buy-sell agreement

Energy Transportation Group, Inc. v. Sonic Innovations, Inc., 2011 WL 2222066 (D. Del.)(June 7, 2011)

Federal district court affirms damages award for patent infringement despite jury “splitting the difference” between the parties’ experts’ reasonable royalty analyses.

Experts: Terry Musika (plaintiff); Putnam (defendant)

Judge:  Sleet

State/Jurisdiction:   federal/Delaware

Court: U.S. district court

Type of case:  IP

Harris v. Koenig, 2011 WL 2531257 (D. D.C.)(June 27, 2011)

Court upholds the alternative investment method used by ESOP expert to support claims that plan trustee breached its fiduciary duty by imprudently investing in stocks it knew to be artificially inflated by accounting improprieties.

Experts: Saul Solomon

Judge:  Kessler

State/Jurisdiction: federal  / District of Columbia

Court: U.S. District Court

Type of case:  ESOP