Recent case law added to BVLaw
New cases where the value of private businesses, or damages, are beling litigated have been added to the BVLaw database this week. A sampling includes:
Lucent Technologies, Inc. v. Microsoft Corp., 2011 WL 2728317 (S.D. Calif.)(July 13, 2011)
Federal district court precludes expert’s patent infringement damages under Uniloc standard for failing 1) to establish the patented software as the basis for consumer demand of Microsoft Outlook; or, 2) specifically apportioning damages between the patented and unpatented features of Outlook.
Judge: Huff
State/Jurisdiction: federal/California
Court: U.S. District Court
Type of case: IP
SIC code and industry: 7372 Prepackaged Software (software publishing)
Rappaport v. Gelfland, 2011 WL 3215379 (Cal. App. 2 Dist.)(July 28, 2011)
California Court of Appeals construes “liquidation value” of law firm under partnership buyout statute to require a “construct” of selling assets over time at fair market value, discounted to present value as of the dissociation date.
Experts: Jan Goren and Paul Kelley (plaintiff) and David Nolte (defendants)
Judge: Croskey
State/Jurisdiction: California
Court: Court of Appeal
Type of case: judicial dissolution
SIC code and industry: 8111 Legal Services
In re Terrestar Networks, Inc., 2011 WL 3654543 (Bkrtcy. S.D.N.Y.)(Aug. 19, 2011)
Bankruptcy court holds that a security interest may exist in the economic value of an FCC license, despite federal law precluding the granting of a collateral interest in the license itself.
Experts: none
Judge: Lane
State/Jurisdiction: federal/ New York
Court: U.S. Bankruptcy Court
Type of case: bankruptcy
SIC code and industry: 4899 Communications Services, NEC (satellite communications)
Estate of Petter v. Commissioner, 2011 WL 3332532 (C.A. 9)(Aug. 4, 2011)
Ninth Circuit upholds defined value, formula allocation clauses against IRS argument that they require a condition precedent—i.e., an IRS audit and/or determination of fair market value.
Experts: Moss Adams, LLP
Judge: Bybee
State/Jurisdiction: federal
Court: U.S. Court of Appeals, 9th Circuit
Type of case: federal tax
SIC code and industry: 6733 Trusts, Except Educational, Religious, and Charitable (personal trusts, estates, and agency accounts)
Oracle America, Inc. v. Google Inc., 2011 WL 2976449 (N.D. Cal.)(July 22, 2011)
Federal district court precludes expert’s billion dollar damages calculations for patent infringement under the entire market value rule and other legal and evidentiary bases, and provides a clear ‘starting point’ for any reasonable royalty analysis.
Experts: Dr. Iain M. Cockburn (plaintiff)
Judge: Alsup
State/Jurisdiction: federal/ California
Court: U.S. District Court
Type of case: IP
SIC code and industry: 7372 Prepackaged Software (software publishing)
Davidson v. Davidson, 2011 WL 3476827 (Mich. App.)(Aug. 9, 2011)(unpub.)
Trial court did not err by excluding proffered appraisal expert; even though he had 30 years of accounting and real estate experience, he lacked a college degree and had never been qualified as a BV expert.
Experts: unnamed
Judge: O’Connell
State/Jurisdiction: Michigan
Court: Court of Appeals
Type of case: marital dissolution
SIC code and industry: 5812 Eating Places
Campbell v. Campbell, 2011 WL 3444240 (Va. App.) (Aug. 9, 2011) (unpub.)
Appellate court affirms trial court finding that expert who relied on “estimates” of asset value, provided by the husband with an unreliable memory, was not credible.
Experts: Robert Raymond (husband)
Judge: Elder
State/Jurisdiction: Virginia
Court: Court of Appeals
Type of case: marital dissolution
SIC code and industry: 2421 Sawmills and Planing Mills, General