Turek Enterprises, Inc. v. State Farm Mutual Automobile Insurance Co.
In business interruption case resulting from mandatory shutdowns to control COVID-19, court finds plaintiff chiropractic clinic failed to show insurer breached its policy; court says plaintiff did not demonstrate “tangible damage” to property and failed to overcome policy’s express virus exclusion.
Excelling in Litigation and Dispute-Related Valuations: How to Not Get Caught Bringing a Knife to a Gunfight
Preparing a valuation analysis can be difficult enough, let alone defending it against an opposing party questioning your every move. It is important for valuation experts to know how their valuations may be challenged by other experts and work to effectively address these issues pre-emptively. Presenters Sean Saari and Bob Ranallo discuss how to prepare yourself, and your valuation report, when you know your work will be subject to review and critique in a litigation ...
Judicial panel resistant to consolidating COVID-19 business interruption litigation
Responding to requests by plaintiffs who are pursuing lawsuits against insurers for COVID-19-related business losses, the Judicial Panel on Multidistrict Litigation (JPML Panel) recently rejected two proposals for centralization.
D&P’s de Gray releases new financial damages guide for lost value calculations
Neil de Gray, a director in the Toronto office of Duff & Phelps, makes a strong argument for the use of business valuation professionals in any calculation of damages in his new guide The Financial Damages Model for Loss of Value, published late last month by Lexology.
Court ‘Sympathizes’ With Businesses Claiming COVID-19-Related Losses but Finds No Coverage Under Policy
In a business interruption case resulting from mandatory shutdowns to control COVID-19, court dismisses plaintiff barbershops’ claims against insurance company; plaintiffs failed to show accidental direct physical loss to premises as required for coverage and did not overcome express virus exclusion.
Diesel Barbershop, LLC v. State Farm Lloyds
In a business interruption case resulting from mandatory shutdowns to control COVID-19, court dismisses plaintiff barbershops’ claims against insurance company; plaintiffs failed to show accidental direct physical loss to premises as required for coverage and did not overcome express virus exclusion.
In COVID-19 Business Interruption Case, Court Finds Business Adequately Alleges It Suffered a Physical Loss
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court declined to grant a motion to dismiss claims of plaintiffs; plaintiffs, inter alia, adequately allege that they suffered a physical loss due to COVID-19.
Studio 417 v. Cincinnati Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court declined to grant a motion to dismiss claims of plaintiffs; plaintiffs, inter alia, adequately allege that they suffered a physical loss due to COVID-19.
Rose’s 1, LLC v. Erie Ins. Exch.
D.C. court, ruling on parties’ motions for summary judgment, finds restaurant owners cannot show that mayor’s COVID-19-related closure orders constituted “direct physical loss” to the property, as required under the existing business interruption policy; court rules for insurer and closes case.
Court Says Restaurants Fail to Meet Requirements for COVID-19-Related Business Interruption Coverage
D.C. court, ruling on parties’ motions for summary judgment, finds restaurant owners cannot show that mayor’s COVID-19-related closure orders constituted “direct physical loss” to the property, as required under the existing business interruption policy; court rules for insurer and closes case.
Deviations From Historical Cash Flow and Their Implications to Effective Discount Rates for Lost Profits Analyses
The authors address the direct relationship between projected cash flows (that is, those being measured for risk) and discount rates in a lost profits analysis.
Michigan court decides COVID-19 business interruption claim; many more cases in the pipeline
COVID-19-related business interruption cases are winding their way through the court system, and one state court, in a matter of first impression, recently issued a decision.
Accounting fraud causes Berkshire Hathaway subsidiary to overpay for sinking German manufacturer
Financial experts were unable to prevent a Berkshire Hathaway subsidiary, Precision Castparts Corp. (PCC), from acquiring a German family business for five times as much as the collapsing company was worth, recent articles in the New York Times and the German newspaper Handelsblatt report.
Damage Valuation in a Financial Advisor Termination Case
In a wrongful termination of a financial advisor, the damage calculation involves a determination of the value of the advisor’s book of business at the time of termination as well as consequential and any special damages.
Expert’s Damages Calculation Based on Extensive Experience in Field Is Reliable, Court Finds
Court admits survey evidence, finding expert’s methodology conformed to accepted principles in the field and noting that technical objections go toward weight; court also admits both parties’ damages experts, finding they had extensive experience in the field and were both qualified; questions as to reliability of method “can be explored at trial.”
Geiger v. Creative Impact Inc.
Court admits survey evidence, finding expert’s methodology conformed to accepted principles in the field and noting that technical objections go toward weight; court also admits both parties’ damages experts, finding they had extensive experience in the field and were both qualified; questions as to reliability of method “can be explored at trial.”
NetOne, Inc. v. Panache Destination Management
Court says plaintiff fails to show defendant breached contract in COVID-19-related damages case; plaintiff’s invocation of force majeure clause is futile where clause is silent as to whether plaintiff has a right to full deposit after termination of contract due to imposed travel restrictions.
Plaintiff’s COVID-Related Contract Claim Falters Despite Force Majeure Provision
Court says plaintiff fails to show defendant breached contract in COVID-19-related damages case; plaintiff’s invocation of force majeure clause is futile where clause is silent as to whether plaintiff has a right to full deposit after termination of contract due to imposed travel restrictions.
Business interruption trends and cases triggered by COVID-19
The gleaming billboards of Times Square went dark on May 27 for one minute to alert the nation that pandemic-related business interruption insurance claims are being denied by insurers.
Does business interruption insurance decrease company-specific risk?
Business valuers often ‘tic the box’ on property and casualty insurance policies as part of their management interviews.
Supreme Court rules on willfulness requirement to obtain infringer’s profits
In a trademark infringement case that turned on whether the plaintiff had to show willful infringement by the defendant to obtain the infringer’s profits, a unanimous U.S. Supreme Court recently answered no.
No act of God excuse for Victoria’s Secret buyer—February agreement excepted pandemic
In the wake of COVID-19, a number of buyers have resorted to force majeure (aka act of God) clauses to withdraw from deals.
Business interruption cases and the role financial experts can play
Filing a business interruption claim has become one of the go-to moves for businesses as they try to mitigate the impact of COVID-19. A discussion of two cases that were adjudicated just before the COVID-19 crisis came into relief explains the trajectory many claims, including claims arising out of the COVID-19 crisis, may take and points to opportunities for damages experts.
Court Finds Use of Industry Licensing Data Reasonable and Relevant to Expert’s Reasonable Royalty Opinion
Court admits most of damages expert’s reasonable royalty opinion, finding expert properly apportioned out value of nonpatented features in calculating royalty rate; expert’s use of industry-specific data from ktMINE database was reasonable and sufficiently tied to facts of the case, court says.
J&M Industries, Inc. v. Raven Industries, Inc.
Court admits most of damages expert’s reasonable royalty opinion, finding expert properly apportioned out value of nonpatented features in calculating royalty rate; expert’s use of industry-specific data from ktMINE database was reasonable and sufficiently tied to facts of the case, court says.