The plaintiffs’ business was allegedly damaged by the actions of the defendant. The plaintiffs engaged an expert in economic damages and lost profits. The defendants engaged their own expert to provide his opinions as to why he believed the plaintiffs’ expert’s opinions were unreliable. The court ultimately excluded this portion of the defendants’ expert’s testimony.
View Case Digest View CasePhillip J. Barker v. Vulcan Chemical Technologies, Inc., et al.
The California Court of Appeals for the 3rd District affirmed an arbitrator’s award of lost profits in this breach of contract case that resulted in the destruction of Barker’s business.
In re Kinser Group LLC
In § 506(a) hotel valuations, bankruptcy court finds creditor’s experienced expert premised appraisals on “fundamentally flawed” base assumption that hotels would be sold on the valuation date, where debtor’s plan said debtor would retain and operate hotels; court said replacement value applied.
Guttman v. Guttman
The one-third partner of a real estate partnership, Bruce Guttman (Bruce), sued for dissolution. The two majority partners initiated a statutory procedure to buy out Bruce. All three appraisals were very close to $38 million. Feeling the valuations to be too low, Bruce sought to withdraw his complaint without prejudice. The trial court, on a motion from the majority partners, vacated Bruce’s dismissal. The appellate court affirmed the trial court.
TXCO Resources, Inc. v. Peregrine Petroleum, LLC (In re: TXCO Resources, Inc.)
Court denies lost profits damages for trade secret misappropriation in oil and gas case, but calculates $15.8 million reasonable royalty award based on prior “licenses” (farmout and joint exploration agreements) that were particular to the plaintiff and c ...
Puklich v. Puklich
In buyout dispute related to various family businesses, including auto dealership, high court finds trial court was authorized to adjust value finding to account for majority shareholder’s oppressive conduct; case law supported rejection of discounts in valuing minority shareholder’s interest.
Magnussen Furniture v Mylex Ltd.
In Magnussen Furniture, v Mylex Ltd., 2006 Canill 5309 (ON S.C.) (decided February 21, 2006), the Ontario Superior Court of Jusfice calculated the amount of lost profits from anew business line launched by an established business. Magnussen Furniture Inc.
Kipperman v. Onex Corp.
Court rejects expert’s unsupported use of three-year historical averages in his DCF to adjust the debtors’ management projections regarding revenue, debt-free cash flows, capital expenditures, and sales.
Powell v. Anderson (II)
We are asked to vacate a final opinion of the Minnesota Court of Appeals on the grounds that the author of the opinion, Judge Roland Amundson, was disqualified.
Estate of Doris F. Kahn v. CIR
The full Tax Court concluded that a discount was not applicable to individual retirement accounts (IRAs) to account for the built-in gains that would be taxable to estate or beneficiaries upon their distribution. It rejected various analogies to lottery p ...
In re Reading Broadcasting, Inc.
A case dealing with the valuation of stock options for the determination of an unsecured claim in bankruptcy, which looks to and discusses expert testimony taken in a prior state law case.
Estate of Sawade v. Commissioner
49 T.C.M. (CCH) 214 (1984) T.C. Memo. 1984-626. Estate of Myrtle M. Sawade, deceased, Louise C. (Dewey) Hornstein, Executor; Myrtle M. Sawade Revocable Living Trust (executed May 17, 1977), Louise C. (Dewey) Hornstein, Trustee, as Transferee; Dinan E. Hornstein, Kathleen H. Rivero, and Louise C. (Dewey) Hornstein A/K/A Dewey C. Hornstein, as Transferees v. Commissioner. Docket No. 23656-82. Filed December 3, 1984. United States Tax Court. *215 John L. Sullivan, 611 Olive St., St.
In re Med Diversified, Inc. (I)
In a case of first impression in a bankruptcy adversary proceeding, the narrow issue was whether Scott P. Peltz, the proposed business valuation expert witness for Addus Healthcare Inc. (Addus), was qualified.
Douglas A. Johnson v. Theresa C. Jones, et al.
The U.S. District Court for the Eastern District of Michigan calculated an architect's damages under the Lanham Act for defendant's willful infringement of his architectural drawings. The damages against both defendant builder and architect were calculat ...
Sossikian v. Ennis
Defendant puts financial expert to credible use in disproving plaintiff’s request for damages in breach of contract case.
All Pro Maids, Inc. v. Susan Layton
The Delaware Court of Chancery determined damages stemming from the breach of a one-year noncompete agreement involving an office cleaning business.
Exelon Corp. v. Commissioner
Appeals court upholds Tax Court’s ruling that taxpayer’s transactions do not represent section 1031 like-kind exchanges because taxpayer never assumed ownership of replacement plants; improper input from taxpayer’s law firm tainted appraisals used to show otherwise; accuracy penalty is justified.
In re Colonial Realty Company; Hirsch v. Steinberg (II)
The issue was whether the transfer of stock of Danbury Surgical Center Inc. (DSC) and Bridgeport Surgical Center Inc. (BSC) by debtors Jonathan Googel and Benjamin Sisti to the defendants Gerald Steinberg and Robert Simons were fraudulent transfers under Bankruptcy Code § 548(a).
Alaska Rent-a-Car, Inc. v. Avis Budget Group, Inc.
Ninth Circuit affirms district court’s finding that “impeachable” aspects of an expert’s lost profits calculation do not render the opinion inadmissible under Daubert; further, the plaintiff, a profitable Alaska company “since statehood,” proved damages w ...
Cargotec Corp. v. Logan Industries
Appeals court majority strikes down lost profits and diminished business value awards, finding plaintiff failed to show causation and its damages expert based his calculations on management’s business plan without substantiating the plan’s underlying (unreasonable) gross profit goals.
LifeWise Master Funding, et al. v. Telebank
The U.S. Court of Appeals for the Tenth Circuit affirmed a district court’s decision excluding a lost profits estimate, computed using a regression analysis, under Fed. R. Evid. 702.
Manpower, Inc. v. Insurance Co. of Pennsylvania (III)
Seventh Circuit overturns district court’s decision to exclude plaintiff expert’s business loss calculation, finding the lower court “exercised its role as gatekeeper under Daubert with too much vigor” when it “unduly” scrutinized the quality of the exper ...
Oscar Gruss & Son, Inc. v. Yossie Hollander
The U.S. Court of Appeals for the 2nd Circuit reversed the district court’s calculation of damages for breach of contract to assign warrants in a publicly traded company.
In re Hembree
In this appeal of a denied motion by the wife to set aside a marital settlement order, the appellate court affirmed the trial court. The wife claimed that the husband did not disclose a number of marital assets and misrepresented the values of certain marital assets. The trial court appointed its own expert for valuation of assets. The expert was unable to value a number of the assets for lack of information including a lack of proof of existence of some alleged assets.
Dana Corp. v. Microtherm, Inc.
Court finds evidence of indivisible lost profits damages insufficient when law specifically requires a separate breakdown of damages caused by each defendant in breach of contract case.
In re Residential Capital, LLC
Ruling on the adequate protection claim of junior secured noteholders (JSNs) in a complex bankruptcy proceeding, court finds JSNs failed to prove a diminution in the value of their cash collateral during case; flawed assumptions and inputs invalidate the ...