Here are a sampling of cases where issues of business valuation factored in the final court decisions. As always, BVLaw Alert’s digests, and original court documents, are available for these and other breaking decisions.
Burton v. Mooneyham, 2012 Tenn. App. LEXIS 205 (March 28, 2012)
Divorce court discredits conflict between expert’s testimony at trial and then a rehearing, when he originally said the husband’s rental car business was worth a net $200,000 as of 2008 but then later changed his opinion to say it was worth nothing at that time.
Experts: Kurt Meyers
Court: Court of Appeals
Type of case: marital dissolution
SIC code: 7514 Passenger Car Rental
In re El Paso Corp. Shareholders Litigation, 2012 Del. Ch. LEXIS (Feb. 29, 2012)
Despite a disturbing record of questionable valuations and conflicted financial advisors and principals, the Delaware Chancery Court declines to enjoin the billion-dollar merger of Kinder Morgan with El Paso.
Experts: Goldman Sachs, Morgan Stanley (defendants)
Court: Court of Chancery
Type of case: dissenting shareholder
SIC code: 1311 Crude Petroleum and Natural Gas
DeFazio v. Hollister, Inc., 2012 U.S. Dist. LEXIS 9063 (April 6, 2012)
Federal district court finds that ESOP trustees breached their fiduciary duties by failing to determine whether permitting the company to repurchase plan stock at book value was “adequate consideration,” but dismissed the plaintiffs’ claims for lack of any expert testimony on damages or material harm to the plan.
Experts: John Calvin Korschot (plaintiffs); Roger Grabowski (defendants)
Court: U.S. District court
Type of case: ESOP
SIC code: 3841 Surgical and Medical Instruments and Apparatus