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