Lessors of Nonresidential Buildings (except Miniwarehouses)
This industry comprises establishments primarily engaged in acting as lessors of buildings (except miniwarehouses and self-storage units) that are not used as residences or dwellings. Included in this industry are: (1) owner-lessors of nonresidential buildings; (2) establishments renting real estate and then acting as lessors in subleasing it to others; and (3) establishments providing full-service office space, whether on a lease or service contract basis. The establishments in this industry may manage the property themselves or have another establishment manage it for them.
Robertson v. Hyde Park
This case was a partnership dispute where the defendant partners tried to buy out the plaintiff partners. On appeal before the New Jersey Superior Court Appellate Division, the defendants argued that the plaintiffs’ dissociation was wrongful and damages should be assessed, discounts for lack of control and marketability should be applied to the value, and the partnership value should be reduced to account for partnership outstanding debts and other amounts. The plaintiffs argued that the trial court erred by relying on the defendants’ expert’s report and not their expert’s report, refusing to increase the value by personal loans taken by the defendant partners, and failing to find that the partnership overpaid management and accounting fees. The appellate court affirmed the trial court with one exception, whether the partnership agreement disassociated properly. On that count, the appellate court determined that the disassociation was appropriate.
New Jersey Appellate Court Affirms Valuation of Shopping Mall, Disallows Any Control or Marketability Discounts, Affirms Proper Dissociation by Plaintiffs
This case was a partnership dispute where the defendant partners tried to buy out the plaintiff partners. On appeal before the New Jersey Superior Court Appellate Division, the defendants argued that the plaintiffs’ dissociation was wrongful and damages should be assessed, discounts for lack of control and marketability should be applied to the value, and the partnership value should be reduced to account for partnership outstanding debts and other amounts. The plaintiffs argued that the trial court erred by relying on the defendants’ expert’s report and not their expert’s report, refusing to increase the value by personal loans taken by the defendant partners, and failing to find that the partnership overpaid management and accounting fees. The appellate court affirmed the trial court with one exception, whether the partnership agreement disassociated properly. On that count, the appellate court determined that the disassociation was appropriate.
In Wrongful Dissolution, New York’s High Court Approves FMV Valuation
In wrongful partnership dissolution, New York high court finds, under applicable statute, exiting partner’s interest may be valued under FMV standard of value; where exiting partner’s interest is minority interest, DLOM and minority discount may apply.
Congel v Malfitano (II)
In wrongful partnership dissolution, New York high court finds, under applicable statute, exiting partner’s interest may be valued under FMV standard of value; where exiting partner’s interest is minority interest, DLOM and minority discount may apply.
Unilateral Partnership Dissolution Exacts Steep Price From Wrongdoer
New York appellate court says trial court erred when it declined to apply minority discount in determining “value” of minority shareholder’s interest in partnership where shareholder wrongfully dissolved partnership and buyout was not a fair value proceed ...
Congel v Malfitano (I)
New York appellate court says trial court erred when it declined to apply minority discount in determining “value” of minority shareholder’s interest in partnership where shareholder wrongfully dissolved partnership and buyout was not a fair value proceed ...
Expert Fee Dispute Devolves Into Malpractice Claim
In fee dispute, appeals court affirms trial court’s rejection of disgruntled client’s attempt to defend against accounting firm’s suit with allegations of malpractice; client failed to offer expert testimony to support attack on appraiser’s valuation.
Cohen & Company v. Breen
In fee dispute, appeals court affirms trial court’s rejection of disgruntled client’s attempt to defend against accounting firm’s suit with allegations of malpractice; client failed to offer expert testimony to support attack on appraiser’s valuation.
Plan Confirmation Hinges on Property Valuation
The Bankruptcy Court finds the debtor’s reorganization plan is not feasible because it fails to provide enough funds to pay in full the primary creditor’s secured claim; the plan rested on an improperly low valuation of the property that makes up the majo ...
In re Civic Partners Sioux City, LLC
The Bankruptcy Court finds the debtor’s reorganization plan is not feasible because it fails to provide enough funds to pay in full the primary creditor’s secured claim; the plan rested on an improperly low valuation of the property that makes up the majo ...
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.
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.
Discounts in Estate Tax Valuation Do Not Apply in Divorce
Appraisal used in estate tax valuation, which included substantial discounts for lack of marketability and control, were inappropriate for use ten years later in divorce.
Short v. Short
Appraisal used in estate tax valuation, which included substantial discounts for lack of marketability and control, were inappropriate for use 10 years later in divorce.
Expert’s Market Valuation Tested Under Frye Standard
Court admits expert testimony under state rule similar to the Frye standard regarding wide range of fair market value indicators for subsidiaries.
Statutory Fair Value of Real Estate Holding Company Includes Transaction Costs, Taxes
Court considers whether statutory fair value appraisal should include transactional costs and tax effects of selling a company’s sole asset, a commercial office building.
Brynwood Co. v. Schweisberger
Court considers whether statutory fair value appraisal should include transactional costs and tax effects of selling a company’s sole asset, a commercial office building.
8000 Maryland, LLC v. Huntleigh Financial Services, Inc.
Court admits expert testimony under state rule similar to the Frye standard regarding wide range of fair market value indicators for subsidiaries.
Florida Sunrise, LTD v TRI-M Investments of South Florida, Inc
Florida Sunrise, the landlord, appeals a final judgment entered in favor of its former tenant on a counterclaim. We reverse, in part, solely as to the damage award.
HRFH, Inc. v. Pourlos Enterprises, Inc.
The South Carolina Court of Appeals affirmed the exclusion of testimony on damages from the owner of a new business.
Do Minority Discount and DLOM Apply in ‘Fair Value’ Analysis?
Are discounts for lack of control and marketability appropriate in a “fair value” analysis, i.e., in the context of withdrawing limited partners (and, by analogy, dissenting shareholders)?
East Park Ltd. Partnership v. Larkin, et al.
Court considers whether discounts for lack of marketability and control apply to “fair value” analysis ...
Elie Abboud, et al. v. Sylvester Robertson, et al.
The Ohio Court of Appeals, 8th District, affirmed a lower court’s lost profit award for a breach of lease agreement.
Lost Profits Based on Operating History
The Ohio Court of Appeals, 8th District, affirmed a lower court’s lost profit award for a breach of lease agreement.