Russell v. Russell
Court of Appeals rejects husband’s claim that trial court erred in valuing interest in family business based on wife’s expert’s computation, which deviated from industry standards and included discounts (DLOM, DLOC, personal goodwill) based on expert’s ag ...
Hayden v. Pittendrigh
Court dismisses wife’s claim fraud against the husband, finding that she accepted $1 million for her share in the marital business, based on a limited appraisal, and waited too long after finding out the company sold for $54 million to bring her suit.
Reasonable Compensation Analysis Must Incorporate Applicable Legal Test
Tax Court finds CEO compensation reasonable under the independent investor test when return on equity approaches 20% but finds -15% return unacceptable and adjusts compensation to result in 10% return.
Kehrin v. Kehrin
Husband’s valuation expert incorrectly reduced the hard assets (cash and accounts) of an ongoing business by a personal goodwill value.
Multipak Corp. v. Commissioner
Tax Court finds CEO compensation reasonable under the independent investor test when return on equity approaches 20%, but finds negative 15% return unacceptable, and adjusts compensation to result in 10% return.
Broker vs. BV Expert Value License Bureau for Divorce: Who Is More Credible?
Divorce court adopts a broker’s net asset value for licensing bureau, finding that its lack of transferability was key applying to this approach versus a BV expert’s capitalization/excess earnings analysis.
Haynes v. Haynes
Divorce court adopts a broker’s net asset value for licensing bureau, finding that its lack of transferability was key applying to this approach versus a BV expert’s capitalization/excess earnings analysis.
Court Calls Expert Statutory Fair Value ‘Too Good to Be True’
Court reduces statutory fair value valuation of minority shareholder’s interest due to expert’s failure to account for company’s financial troubles and fraud.
Encompass Teleservices, Inc. v. Sheets
Court reduces statutory fair value valuation of minority shareholder’s interest due to expert’s failure to account for company’s financial troubles and fraud.
Is a Court-Appointed Appraiser Protected From Malpractice?
Appraiser sued for malpractice, claims quasi-judicial immunity.
Use of ‘Hypothetical Market’ Standard in Valuing Record Company Logo
Court weighs in on the "hypothetical market" standard to determine logo's worth.
Peterka v. Dennis (I)
Appraiser sued for malpractice claims quasi-judicial immunity.
Popovich v. Sony Music Entertainment, Inc.
Court weighs in on the "hypothetical market" standard to determine logo's worth.
ERISA May Not Shield ESOP Appraisers From State Law Liability
Federal appeals court considers whether ERISA pre-empts state law claims of professional malpractice against ESOP appraiser.
Landscaping Business Valued
The California Court of Appeals, Sixth Appellate District reversed the lower court’s valuation of a landscaping business. It determined that the trial court’s findings regarding the value of the business and its calculation of that value were inconsistent ...
Loss of Value Since the Parties’ Separation Not Considered
The Washington Court of Appeals affirmed the lower court's valuation of the parties' used car dealership. The business was began while the parties lived together prior to their marriage. Both parties worked at the dealership during the marriage. The lowe ...
In re Marriage of Paula Sue Sparks v. Gary Wayne Sparks
The Washington Court of Appeals affirmed the lower court's valuation of the parties' used car dealership. The business was began while the parties lived together prior to their marriage. Both parties worked at the dealership during the marriage. The lowe ...
In re the Marriage of Eulalia Silva v. Manuel Silva
The California Court of Appeals, Sixth Appellate District reversed the lower court’s valuation of a landscaping business. It determined that the trial court’s findings regarding the value of the business and its calculation of that value were inconsistent ...
Kloots v. American Express Tax and Business Services, Inc.
Federal appeals court considers whether ERISA pre-empts state law claims of professional malpractice against ESOP appraiser.
League v League
The parties were married on October 29, 1988. They have two minor children, Charles R. League, born May 17, 1990, and Lauren G. League, born July 26, 1991.1 On August 30, 2001, plaintiff filed a complaint for divorce, but dismissed it on September 6, 20 ...
Value of Phantom Stock Plan Offers a ‘Big Handful of Air’
Without independent appraisal, valuation of phantom stock plan amounts to a “big handful of air.”
Lost Profits Award Must Be Supported by Objective Facts and Data
The Texas Court of Appeals, Fourth District, reversed a lost profits award to a gasoline dealer because the lost profits evidence was speculative.
Ferarolis v. International Recovery Systems, et al.
Without independent appraisal, valuation of phantom stock plan amounts to a “big handful of air.”
Norma Romero v. Murray J. McClelland
The California Court of Appeal, 4th District, affirmed the jury’s award of $304,000 for lost future earnings capacity based in part on her inability to return to her interior decorating business following an automobile accident.
Deane Krakower v. Tami Krakower
The Florida Court of Appeals, Fourth District affirmed the valuation of a cosmetics corporation. The valuation was performed using a capitalization of income approach. Under this approach the court adopted a salary figure for the operating spouse substant ...