Sample case law digests added to BVLaw

These are some of the valuation-related cases we’ve added to BVLaw recently:

Amboy Bancorporation v. The Bank Advisory Group, 2011 WL 1533012 (C.A. 3 (N.J.))(April 25, 2011)(unpub.) Third Circuit reverses district court determination that attorneys and appraisers are not liable for material misstatements of fair value in a proxy statement, remanding case for possible findings of malpractice and apportionment of liability for $33 million in alleged damages.

Experts: The Bank Advisory Group

Judge:  Vanaskie

State/Jurisdiction: federal

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

Type of case:  Malpractice (legal and appraisal)

Arista Records LLC v. Lime Group, 2011 WL 1674796 (S.D.N.Y.)(May 2, 2011) Federal court precludes defendants’ damages expert from testifying to causes of music industry declines, but permits his calculation of reasonable royalty based on hypothetical negotiation to server as evidence of “expenses saved” by defendants in their infringement.

Experts: Richard Waterman (plaintiffs); Emin Gun Sirer and George Strong (defendants)

Judge:  Wood

State/Jurisdiction: federal/New York

Court: U.S. district court

Type of case:  IP

Garman v. Garman, 2011 WL 1844057 (Tenn. Ct. App.)(May 16, 2011) Court rejects doctor’s claims that by departing from medical practice just before divorce, his $15,000 buy-sell payout limits practice value, crediting instead a net asset value, adjusted for routine quarterly bonuses.

Experts: Van Elkins

Judge:  Stafford

State/Jurisdiction: Tennessee

Court: Court of Appeals

Type of case:  marital dissolution

American Ethanol, Inc. v. Cordillera Fund, LP, 2011 WL 1706823 (Nev.)(May 5, 2011) Nevada Supreme court adopts “Delaware” approach to statutory fair value, requiring both parties to prove their respective positions on value but leaving the court to make the final, independent determination, based on the evidence and the equities.

Experts: none

Judge:  Cherry

State/Jurisdiction: Nevada

Court: Supreme Court

Type of case:  dissenting shareholder

Hendrix v. Commissioner, T.C. Memo 2011-133, 2011 WL 2457401 (U.S. Tax Court)(June 15, 2011) Tax Court upholds defined value formula closes, defeating IRS challenges based on lack of arm’s length bargaining and contradiction with public policy.

Experts: Will Frazier

Judge:  Paris

State/Jurisdiction: federal

Court: Tax Court

Type of case:  federal tax

In re Marriage of Price and Turkanis, 2011 WL 1783096 (Cal. App. 2 Dist.)(May 11, 2011)(unpub.) Court approves use of comparable sales data in valuing high-tech startup company, even though comparable transactions took place within one year after the valuation date.

Experts: David Blumenthal and Bret Tack (husband); Alfred Warsavsky, Michael Cannavo, and Thomas Neches (wife)

Judge: Flier

State/Jurisdiction: California

Court: Court of Appeals

Type of case:  marital dissolution

De Lage Landen Operational Services, LLC v. Third Pillar Systems, 2011 WL 1771044 (E.D. Pa.)(May 9, 2011) Court strikes expert evidence under Daubert in trade secrets case, because expert failed to pinpoint date on which misappropriation began—a “vital” requirement when applying the Georgia-Pacific framework.

Experts:  Barry Sussman

Judge:  Bartle

State/Jurisdiction: federal/Pennsylvania

Court: U.S. District Court

Type of case:  IP