Global BV News: Cost of capital parameters in Europe as of Dec. 31, 2020
ValueTrust has released a seventh edition of its “European Capital Market Study” that serves as a comprehensive compilation of capital market parameters such as cost of capital and implied as well as historical risk premiums for European countries.
New Research From Grabowski and Abbott on Recovery and Growth
New upcoming research from Roger Grabowski (Duff & Phelps) and Ashok Abbott (West Virginia University) challenges conventional wisdom about long-term growth rates and economic recovery.
BVU News and Trends February 2021
A monthly roundup of key developments of interest to business valuation experts.
Global BVU News and Trends February 2021
Business valuation news from a global perspective.
Court Declines Motion to Dismiss Claim of Coverage for Loss of Income, but Dismisses the Claim of Coverage Under the Civil Authority Provision
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court declined to grant a motion to dismiss the claim of plaintiff as to coverage for loss of business income but does dismiss the claim of coverage under the civil authority provision of the policy. The court found the wording of the policy sufficiently vague, especially as to the meaning and definition of the word “loss.” In the case of the civil authority provision of the policy, the court decided that plaintiff has not alleged that “[a]ccess to the area immediately surrounding the damaged property is prohibited by civil authority.”
Derek Scott Williams PLLC 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 the claim of plaintiff as to coverage for loss of business income but does dismiss the claim of coverage under the civil authority provision of the policy. The court found the wording of the policy sufficiently vague, especially as to the meaning and definition of the word “loss.” In the case of the civil authority provision of the policy, the court decided that plaintiff has not alleged that “[a]ccess to the area immediately surrounding the damaged property is prohibited by civil authority.”
Court Grants Insurance Company’s Motion to Dismiss Plaintiff’s Complaint That It Suffered Covered Loss of Income Due to COVID-19 Restrictions
In this business interruption case resulting from mandatory restrictions to control COVID-19, the court grants a motion to dismiss claims of the plaintiff. The plaintiff’s arguments that it suffered physical loss or damage to its properties did not sway the court. Nor did its arguments that the civil authority provisions and virus exclusion in the policy were not applicable to deny its claims.
Equity Planning Corp. v. Westfield Ins. Co.
In this business interruption case resulting from mandatory restrictions to control COVID-19, the court grants a motion to dismiss claims of the plaintiff. The plaintiff’s arguments that it suffered physical loss or damage to its properties did not sway the court. Nor did its arguments that the civil authority provisions and virus exclusion in the policy were not applicable to deny its claims.
Forecasting: Removing Rose Colored Glasses
Projections are commonly relied on for business valuations, lost profits analyses, reorganization plans, and a host of other projects within litigation. Using forensic accounting analysis, the speaker will address “rose-colored” projections and how to work with them. Expert Josh Shilts will discuss how to increase confidence levels of projections using macro and micro market data along with statistical analysis.
In COVID-19 Case, Federal Court Declines to Decide Contentious ‘Direct Physical Loss’ Issue and Sends Case Back to State Court
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the federal court grants the plaintiffs’ motion to remand the action back to Minnesota state court to resolve the disputed issue of what qualifies as direct physical loss under state law.
Life Time, Inc. v. Zurich Am. Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the federal court grants the plaintiffs’ motion to remand the action back to Minnesota state court to resolve the disputed issue of what qualifies as direct physical loss under state law.
Agenda available for Energy Valuation Conference May 12
A post-COVID-19 outlook for the energy sector, downstream refineries, upstream reserves, oil and gas valuations, and complex infrastructure assets are some of the topics on the agenda for the Houston Chapter of the American Society of Appraisers (ASA) Energy Valuation Conference on May 12.
Top Expert Answers for Today’s Tough BV Questions
In BVR’s recent webinar, Power Panel: Live Expert Answers for Today’s Tough BV Questions, experts Jay E. Fishman, Michelle Gallagher, Ken Pia, and Jeffrey Tarbell covered various hot topics that affect the business valuation profession. These questions ranged from the basics, such as “What will 2021 look like?” to “What are your thoughts on the current state of the ESOP litigation environment particularly with the new administration coming in?” Here, we summarize five of the questions and answers. For more information, be sure to check out the complete recording and transcript of the session.
Brunswick Panini’s v. Zurich Am. Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court granted defendant insurer’s motion to dismiss the plaintiffs’ claims. The court found the plaintiffs, which operated restaurant and bar facilities in Ohio but had to suspend operations because of the pandemic, did not meet the precondition of “direct physical loss of or damage to” the covered property requirement. Further, the microorganism exclusion precluded coverage of losses.
Court Rejects Plaintiffs’ Argument That Policy Covered Loss of Full Use of Premises Due to COVID-19-Related Shutdowns and Grants Defendant’s Motion to Dismiss
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court granted defendant insurer’s motion to dismiss the plaintiffs’ claims. The court found the plaintiffs, which operated restaurant and bar facilities in Ohio but had to suspend operations because of the pandemic, did not meet the precondition of “direct physical loss of or damage to” the covered property requirement. Further, the microorganism exclusion precluded coverage of losses.
Court Dismisses Plaintiff’s COVID-19-Related Suit, Noting Claimed Loss of Use of Properties Is Not Direct Physical Loss Under the Relevant Policy
In this business interruption case resulting from mandatory shutdowns to control COVID-19, a federal court granted the defendant insurer’s motion to dismiss plaintiff’s suit over coverage, finding plaintiff’s claim for loss of income based on state orders restricting use does not meet “direct physical loss” prerequisite.
Court Finds Insurance Policies Are Not Ambiguous as to ‘Physical Loss’ Requirement and Dismisses Plaintiffs’ COVID-19-Related Damages Claims
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants the defendant insurance company’s motion to dismiss plaintiffs’ complaint seeking coverage for lost business income under their insurance policies. Plaintiffs operated a hotel and adjacent banquet and catering facility. In ruling against the plaintiffs, the court found the virus did not perceptibly harm the properties and the policies included a virus exclusion that prevented coverage of business losses.
Family Tacos, LLC v. Auto Owners Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants motions of the defendant to dismiss claims of the plaintiff. The plaintiff files claims for coverage under its insurance policy for losses resulting from COVID-19 shutdowns and seeks to establish a class. The court decides that coverage is not provided under the policy because there is no physical loss; the civil authority provision is likewise not effective, and there is a virus exception that is applicable to the case at hand.
MIKMAR, Inc. v. Westfield Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants the defendant insurance company’s motion to dismiss plaintiffs’ complaint seeking coverage for lost business income under their insurance policies. Plaintiffs operated a hotel and adjacent banquet and catering facility. In ruling against the plaintiffs, the court found the virus did not perceptibly harm the properties and the policies included a virus exclusion that prevented coverage of business losses.
Plaintiff Fails to Convince the Court That Physical Loss or Physical Damage Has Occurred; Virus Clause Applies and Defendant’s Motion to Dismiss Is Granted
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants motions of the defendant to dismiss claims of the plaintiff. The plaintiff files claims for coverage under its insurance policy for losses resulting from COVID-19 shutdowns and seeks to establish a class. The court decides that coverage is not provided under the policy because there is no physical loss; the civil authority provision is likewise not effective, and there is a virus exception that is applicable to the case at hand.
Torgerson Props. v. Cont’l Cas. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, a federal court granted the defendant insurer’s motion to dismiss plaintiff’s suit over coverage, finding plaintiff’s claim for loss of income based on state orders restricting use does not meet “direct physical loss” prerequisite.
Court Says Plaintiff Fails to State Plausible Claim to Relief for COVID-19-Related Losses but Allows Amendment of Complaint
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court says the plaintiff, a California restaurant, failed to state plausible claims to relief but gives plaintiff an opportunity to amend its complaint, even if “it does not seem likely” the plaintiff will be able to overcome the complaint’s deficiencies.
Protégé Rest. Partners LLC v. Sentinel Ins. Co.
In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court says the plaintiff, a California restaurant, failed to state plausible claims to relief but gives plaintiff an opportunity to amend its complaint, even if “it does not seem likely” the plaintiff will be able to overcome the complaint’s deficiencies.
Despite COVID-19 and Brexit, the UK minted six new unicorns in 2020
CBInsights has updated its 2020 summary, showing that 76 private startups achieved unicorn status (a unicorn is a private company that has a valuation of more than $1 billion) last year, including six from the UK.
Choose Your Client Wisely in a Bankruptcy Engagement
Robert Reilly (Willamette Management Associates) and Josh Shilts (Shilts CPA) conducted an informative session on valuations for bankruptcy at the AICPA FVS Conference.