After the petitioners in a statutory appraisal action recently lost big, they undertook a multifaceted assault on the Delaware Court of Chancery’s decision to use the unaffected market price as the indicator of value. Their motion for reargument went nowhere.
One of the most controversial ESOP cases, Brundle v. Wilmington Trust, has now entered the appeals court phase. In 2017, the district court found that the trustee had caused the plan to overpay by $29.8 million by failing to scrutinize the financial advisor’s obviously flawed valuation analysis and value conclusions. The trustee and valuator had strong ESOP credentials.
In the ongoing Brundle v. Wilmington Trust ESOP saga, which is now in the appeals stage, the Department of Labor recently filed an amicus brief in support of the district court’s $29.8 million judgment against the ESOP trustee. The case arose out of a plan participant’s claim that the ESOP trustee breached its fiduciary duties to the plan by causing the ESOP to pay more than fair market value for the employer’s stock.
The 8th Circuit recently upheld a sizable damages award in an unusual business tort case litigated under Nebraska law. One noteworthy aspect in terms of determining economic damages was that the court allowed expert testimony regarding the loss of value to the plaintiff even though the plaintiff did not fail completely upon the wrongdoing.
A recent bankruptcy-related case in front of the California Court of Appeal raises important questions about how one quantifies the value of a dated piece of art, a film, for which there never was a market in the first place.
A drawn-out damages case in which a startup compression sportswear company sued the defendant "private label" manufacturer over an abandoned licensing deal promised to make the plaintiff rich but ultimately ended with nominal damages.
Ultimately, the parties reached a deal that included the sale of the building and the sale of the assets of the practice, as well as an employment contract for the doctor. The asset purchase agreement said the assets being sold included all of the practice's goodwill. At the same time, it allocated 100 percent of the purchase price to tangible assets: furniture, fixtures, equipment and supplies. The agreement also included noncompete and non-solicitation clauses.
It's not your average lost profits or lost business opportunity case. Rather, Hogan's damages experts were successful in quantifying damages under the less-common unjust enrichment theory. Rather than focusing on the damages to Hogan, the plaintiff, stemming from Gawker's misconduct, the experts calculated the gain to Gawker, the defendant, from the misuse of Hogan's assets, that is, his brand and other intellectual property.
For the longest time, Tennessee case law required trial courts presiding over dissenting shareholder actions to determine fair value by using the Delaware block method. In a recent ruling, the Tennessee Supreme Court struck down the requirement and Tennessee has joined the jurisdictions that allow "more modern" valuation approaches.
BVR is very sad to note that the eminent David Laro, a senior judge of the United States Tax Court, passed away on September 21. Valuators in particular looked up to Judge Laro for his unique understanding of the field of valuation and the role it plays in many tax cases.
There is a split in the valuation community as to the merit of calculation engagements. As we recently reported, some valuators are adamantly opposed to doing them, whereas other appraisers believe that calculation engagements have a rightful place in their tool kit.
A decision from the Supreme Court recently led New Jersey to adopt key Daubert factors for determining the admissibility of expert testimony, but the high court’s ruling also expresses a reluctance to fully embrace the Daubert standard.
If more proof is necessary to show that courts across all legal fields dive deep into the details of valuation testimony, a recent damages case that arose in the context of a condemnation proceeding should do the trick.
The parties’ dispute over how to classify earnout payments related to the sale of a valuable marital asset recently prompted a split ruling from the Minnesota Supreme Court. The issue was whether those payments were part of the sales consideration, as the wife argued, or represented future compensation to the husband, as the district court found.
Valuators who work on divorce matters but dislike the litigation environment may find that serving as a neutral financial professional represents a very attractive career alternative.
Choices for the most interesting and pivotal court cases of 2018 involving business valuation issues.
In 2016, the U.S. Tax Court found for the Internal Revenue Service in a dispute over a series of exchanges that Exelon, the tax payer, designated as section 1031 transactions. The court found these were not like-kind exchanges and expressed dismay over the appraisals the tax payer offered to support its claim for significant deductions.
Quarterly Case Update: A One Hour Briefing A BVR Webinar Webinar Handbook July 10, 2013 Presenters: Sylvia Golden R. James Alerding Please note: This Handbook does not qualify for self study CPE credits. Copyright © 2013 Business Valuation Resourc ...
BVLaw™ Case Update: A One Hour Briefing A BVR Webinar Webinar Handbook August 21, 2014 Presenters: Sylvia Golden R. James Alerding Please note: This Handbook does not qualify for self study CPE credits. Copyright © 2014 Business Valuation Resource ...
BVLaw Case Update: A One Hour Briefing Webinar Handbook April 2, 2015 Presenters: Sylvia Golden and R. James Alerding ...
BVLaw Case Update: A One Hour Briefing Webinar Handbook October 29, 2015 Presenters: Sylvia Golden and R. James Alerding Please note: This Handbook does not qualify for self study CPE credits. Copyright © 2015 Business Valuation Resources, LLC (BVR ...
In BVR's second legal briefing, BVR Legal Editor Sylvia Golden and expert appraiser Jim Alerding team up to once again provide appraisers with the most pressing court decisions presented in BVLaw™ and Business Valuation Update™. From the vast and growing compilation of case law procured throughout the United States, Golden and Alerding examine the legal decisions that carry the most weight for appraisers and appraisals, as well as the lessons taught by each decision.