Sample new business valuation cases added to BVLaw in the last few weeks

Here’s a partial listing of digests and court documents added to the exclusive BVLaw database in the past few weeks.   BVLaw reviews the hundreds of cases each month—in damages, family law, Tax Court, the Delaware Chancery and other commercial courts, and elsewhere—to analyze those decisions which depended on business valuation or financial analysis in their conclusions.

Lucent Technologies, Inc. v. Microsoft Corp., 2011 U.S. Dist. LEXIS 130571 (Nov. 10, 2011)

Federal district court reverses $70 million award based on expert’s failure to apportion damages between the patented and unpatented features of the accused product, finding that, at most, the evidence supported $26 million based on proper apportionment                                   

Experts:  Raymond Sims

Judge:  Huff

State/Jurisdiction: federal / California

Court: U.S. district court

Type of case: IP

SIC code and industry: 7372 Prepackaged Software (software publishing) -- Specific categories --

In re Marriage of Rodenback, 2011 Ore. App. LEXIS 1500 (Nov. 9, 2011)

Appellate court disavows day-of-trial valuation by expert that used the husband’s “off the cuff” forecasts, preferring value based on historical earnings, without consideration of the tax burden the husband would have to bear in making the equalization payment to the wife.                                  

Experts: [last names only] Gilbert (husband) and Sickler (wife)

Judge:  Armstrong

State/Jurisdiction:   Oregon

Court: Court of Appeals

Type of case:  marital dissolution

SIC code and industry: 7371 Computer Programming Services

Dataquill Ltd. v. High Tech Computer Corp. 2011 U.S. Dist. LEXIS 138565 (Dec. 1, 2011)

Court excludes portions of expert’s damages analysis that fails to show economic comparability of patents-in-suit to prior licenses, but permits his calculations based on the entire market value rule upon adequate showing that the patented technology helped secure the defendant’s competitive market position.                                  

Experts: Joseph Gemini

Judge:  Gonzalez

State/Jurisdiction: federal/California

Court: U.S. District Court

Type of case:  IP

SIC code and industry:  7372 Prepackaged Software (software publishing)

Spine Solutions, Inc. v. Medtronic Sofamor Danek, Inc, No. 2:07-02175-JPM-dkv (W.D. Tenn.)(Nov. 23, 2011)

Court grants new trial on damages, based on Federal Circuit’s decision in Uniloc abolishing the 25% Rule in calculating reasonable royalty for patent infringement.

Experts: unnamed

Judge:  McCalla

State/Jurisdiction: federal/ Tennessee

Court: U.S. District Court

Type of case:  IP

SIC code and industry: 3841 Surgical and Medical Instruments and Apparatus (except tranquilizer guns and operating room tables)

In re Village at Camp Bowie I, L.P.2011 Bankr. LEXIS 3033 (Aug. 4, 2011)

Bankruptcy court finds “cramdown” interest rate equals at least 6.4%, based on current commercial lending “realities” as well as expert’s application of debtor-specific risk factors, including benefits of bankruptcy and single lender.                                   

Experts: Allyn Bryant Needham (debtor); Paul French (lender)

Judge:  Lynn

State/Jurisdiction: federal/New York

Court: U.S. Bankruptcy Court

Type of case:  bankruptcy

SIC code and industry: 6552 Land Subdividers and Developers, Except Cemeteries

Beijing Tong Ren Tang (USA), Corp. v. TRT USA Corp., 2011 U.S. Dist. LEXIS 135471 (Nov. 23, 2011)

Court vacates over $2 million in lost profits for new venture, finding the damages expert relied solely on “grandiose” and unrealistic business plans.                                   

Experts: Victor Republicano

Judge:  Whyte

State/Jurisdiction: federal/California

Court: U.S. District Court

Type of case:  contract

SIC code and industry: 5122: Drugs, Drug Proprietaries, And Druggists' Sundries