Pediatric Dental Practice Valued as Percentage of Gross Receipts
The California Court of Appeals, First Appellate District, affirmed the trial court’s award of damages for fraud in connection with the sale of a dental practice.
Ik Nam You v. Chong Yol Kim
The California Court of Appeals, Second District found a jury’s award excessive for breach of contract and fraud damages. The Kims sold the Yous retail property and represented that they had its permits and licenses up to date. After a sale by the Yous ...
Post-Breach Unconsummated Sale of Business May Not Be Used to Establish Damages on Date of Breach
The California Court of Appeals, 2nd District, found a jury’s award excessive for breach of contract and fraud damages.
F.S. New Products, Inc., et al. v. Strong Industries, Inc.
The Texas Court of Appeals, First District affirmed a jury’s award of damages in this fraud action. The award was based on the gross margin of sales of a similar product to that produced by Strong Industries. The appellate court acknowledged that fraud da ...
Lost Profits Should Be Calculated as Net Profits
The Texas Court of Appeals, 1st District, affirmed a jury’s award of damages in this fraud action.
AMP Enterprises, et al. v. Price Pfister, Inc., et al.
The California Court of Appeals, Fourth District upheld the trial court’s grant of summary judgment. Price Pfister sought the motion after AMP, their independent sales representatives, brought suit for fraud against Price Pfister when it terminated their ...
Calculation of Damages Must Be Explained in the Expert’s Declaration
The California Court of Appeals, 4th District, upheld the trial court’s grant of summary judgment.
No Proof of 'Loss Causation' Required in Massachusetts for Common Law Fraud Claim
In this action for fraud and misrepresentation against an accounting firm for deceptive financial reporting, the auditors moved for summary judgment on the grounds that the plaintiff investors could not show that their losses were caused by the misrepresentations.
Reisman v. KPMG Peat Marwick LLP
At issue is the misrepresentation of the revenue of a business in which the plaintiff held stock by the defendant.
Streetscenes, et al. v. ITC Entertainment Group, Inc., et al.
The California Court of Appeals, Second District reversed an award for damages stemming from ITC’s failure to produce low budget movie. The court found the recovery of lost profits was too speculative based on the speculative nature of the film making in ...
Low Budget Movie’s Lost Profits Are Speculative
The California Court of Appeals, 2nd District, reversed an award for damages stemming from ITC’s failure to produce low budget movie.
Dorothee Dary, et al. v. Lee Ann Gilbert, et al.
The California Court of Appeals, First District reversed a lower court’s grant of summary judgment. It found that an unprofitable saloon business transferred to the real property owner following an unlawful detainer settlement was transferred for less tha ...
Unprofitable Saloon Has Goodwill
The California Court of Appeals, 1st District, reversed a lower court’s grant of summary judgment.
Gregory L. Pabich v. Randy Kellar
The Texas Court of Appeals, Second District, reversed a jury verdict awarding Kellar the value of his minority interest in a used video game company in this fraud case. The appellate court found that while evidence showed that the company was profitable ...
Valuation Evidence Required
The Texas Court of Appeals, 2nd District, reversed a jury verdict awarding Kellar the value of his minority interest in a used video game company in this fraud case.
Jim Sielaff v. Matco Tools Corporation, et al.
The Wisconsin Court of Appeals affirmed the trial court's dismissal of this fraudulent misrepresentation case. Sielaff purchased an existing Matco dealership which eventually failed. He argued that the seller fraudulently misrepresented the business. He ...
Expert Testimony Required to Establish Value of Business
The Wisconsin Court of Appeals affirmed the trial court's dismissal of this fraudulent misrepresentation case.
William D. Gardner, Jr. et al. v. Travis L. Little et al.
The Mississippi Court of Appeals concluded that the purchasers of an automobile dealership who failed to perform any financial due diligence prior to signing the stock purchase agreement, which contained a disclaimer stating that the purchasers are not re ...
Business Buyer Failed to Perform Due Diligence
The Mississippi Court of Appeals concluded that the purchasers of an automobile dealership failed to perform any financial due diligence prior to signing the stock purchase agreement.
Don Cannon and Mary Lee Cannon v. Wendy March
The Tennessee Court of Appeals agreed with the trial court that March did not misrepresent the restaurant's income in connection with her sale of the restaurant. It found that March was a sophisticated businessman who performed some financial due diligenc ...
Misrepresentation Claim Defeated When Buyer Performed Some Independent Due Diligence
The Tennessee Court of Appeals agreed with the trial court that March did not misrepresent the restaurant's income in connection with her sale of the restaurant.
Louis Dyll, et al. v. Robert Milligan, et al.
The U.S Court of Appeals for the Fifth Circuit reversed a jury's award of lost profits. The court found the award speculative because Dyll did not have a history of successfully producing and marketing technology (HIV detection technology, here).
New Business Rule Defeats Lost Profits Award
The U.S Court of Appeals for the 5th Circuit reversed a jury's award of lost profits.
Ann A. Mergens, et al. v. Alex W. Dreyfoos, Jr. et al.
The Eleventh Circuit determined that when the parties are in an adversarial relationship where dishonesty and fraud have been alleged, it is unreasonable to rely upon representations made by the allegedly dishonest party when negotiating a stock sale to a ...
Valuator’s Strong Disclaimer Made Reliance on Its Opinion of Value Unjustifiable When Adversarial Parties Allege Dishonesty
The 11th Circuit determined that, when the parties are in an adversarial relationship where dishonesty and fraud have been alleged, it is unreasonable to rely upon representations made by the allegedly dishonest party.