Actual Transaction Is ‘Gold Standard’ of Valuation, 7th Circuit Says
7th Circuit says evidence of actual sales transaction concerning the subject company is the “gold standard” of valuation, but finds problems with the plaintiffs’ claims base on a promise to convey 50% of a company’s equity value following an LBO.
Natchez Regional Medical Center v. Quorum Health Resources, LLC
Court affirms that Daubert does not require an expert to be certified in accounting or another specialty, so long as he/she possesses the requisite knowledge and experience; and it admits testimony of hospital turnaround and restructuring expert in case a ...
Heritage Operating, LP v. Rhine Bros. LLC
Texas Court of Appeals enforces a ten-year non-compete agreement as to an owner selling a business; it also reverses a jury award of zero lost profits damages after finding the plaintiff’s expert offered reliable evidence of lost customer contracts and sa ...
‘Laborious’ Buy-Sell Agreement Leads to Lengthy Litigation
Court interprets “laborious” definition of buy-sell value.
Expert Uses Only One Comp to Calculate Auto Dealership Damages
Appellate court affirms $370,000 in lost profits for proposed Chrysler dealership, based in part on actual sales data from a single benchmark run by the same dealer but selling vehicles from a competing manufacturer.
Plaintiff Uses Opponent’s Expert Industry Report to Great Advantage
Court of Appeals reinstates full $66.5 million award for tortious interference with contract to develop natural gas reserves, even though this amount exceeded the valuation by plaintiff’s expert and was most likely derived from defendant’s industry report ...
B-K Cypress Log Homes v. Auto-Owners Insurance Company
Court admits the “before and after” as well as the “yardstick” model developed by the plaintiff’s lost profits expert, leaving questions regarding the underlying assumptions and data for cross-examination at trial, but excludes the defendant’s rebuttal wi ...
Shah v. Steam and Starch Corp.
Appellate court affirms trial court’s grant of a new hearing on damages, due to one expert’s incorrect opinion that would have limited breach of contract for the sale of the business to the difference between the purchase price and the market value of the ...
Nordetek Environmental, Inc. v. RDP Technologies, Inc.
Federal court dismisses expert’s damages calculation of under Daubert for incorrectly applying the diminution of value approach to a recovered business, and for assuming a disputed IP license had no value.
Determining NAV in Troubled Times: Did REIT Board Stumble?
Court affirms NAV methodology used by board to determine “actual value” of REIT during the financial crisis for purposes of fulfilling put agreement, even though it depended on stale data regarding net operating income and capitalization rates.
Can You Prove Lost Profits With Only Five Months of Sales Data?
Court confirms admission of expert’s damages calculations, despite their reliance on only five months of pre-contract sales data.
Comps Are Critical to Prove Lost Profits for Proposed Business
California Court of Appeals permits lost profits for breach of contracts to convey real estate, but finds the plaintiff failed to prove the same with reasonable certainty in this case by relying on other developed locations that were not sufficiently comp ...
DCF Reliable for Calculating Lost Business Value
On plaintiff’s third attempt to prove damages due to defendant’s breach of contract, Sixth Circuit permits expert to present lost business value based primarily on discounted cash flow analysis.
Malik v. Falcon Holdings, LLC
7th Circuit says evidence of actual sales transaction concerning the subject company is the “gold standard” of valuation, but finds problems with the plaintiffs’ claims base on a promise to convey 50% of a company’s equity value following an LBO.
Can Chain Stores Supply Lost Profits Proof for New Outlet?
Court vacates $4.2 million lost profits award, finding that plaintiff’s “sister stores” did not furnish comparable basis for damages projections.
Contract Damages: Accounting for Post-Breach Market Conditions
Court of Appeals affirms $36.3 million lost profits for real estate development, finding that evidence of post-breach market deterioration was not relevant and permitting recovery for collateral damages, even though re-sale contracts did not exist for the ...
Despite ‘Egregious’ Theft of Trade Secrets, Damages Hard to Prove
Despite employees’ ‘egregious’ theft of business secrets, federal court denies lost profits damages for breach of employment agreement due to speculative and overreaching evidence.
Lost Profits Expert Relied Solely on New Business Plan
Court vacates over $2 million in lost profits for new venture, finding the damages expert relied solely on “grandiose” and unrealistic business plans.
DaimlerChrysler Motors Company v. Manuel
Appellate court affirms $370,000 in lost profits for proposed Chrysler dealership, based in part on actual sales data from a single benchmark run by the same dealer but selling vehicles from a competing manufacturer.
Dimaria v. Goor
Court interprets “laborious” definition of buy-sell value.
Carlton Energy Group, LLC v. Phillips
Court of Appeals reinstates full $66.5 million award for tortious interference with contract to develop natural gas reserves, even though this amount exceeded the valuation by plaintiff’s expert and was most likely derived from defendant’s industry report ...
BC Technical, Inc. v. Ensil International Corporation
Court confirms admission of expert’s damages calculations, despite their reliance on only five months of pre-contract sales data.
Pensioenfonds Metaal en Techniek v. Strategic DSRG, LLC
Court affirms NAV methodology used by board to determine “actual value” of REIT during the financial crisis for purposes of fulfilling put agreement, even though it depended on stale data regarding net operating income and capitalization rates.
Flying J, Inc. v. Department of Transportation
California Court of Appeals permits lost profits for breach of contracts to convey real estate, but finds the plaintiff failed to prove the same with reasonable certainty in this case by relying on other developed locations that were not sufficiently comp ...
Court ‘Surprised’ by Expert’s Failure to Back Up Business Loss
Court dismisses claim for business interruption losses because neither the plaintiff nor its experts could prove the damaged equipment caused an actual lost sale or lost sale opportunity.