City of Fort Collins v. Open Int’l, LLC
In a breach of contract suit concerning failure of vendor to deliver software, the court considered and ruled on motions to exclude certain expert witnesses. The court denied most motions while granting some motions in part.
U.S. District Court (Colorado) Rules on Motions to Exclude Testimony of Expert Witnesses
In a breach of contract suit concerning failure of vendor to deliver software, the court considered and ruled on motions to exclude certain expert witnesses. The court denied most motions while granting some motions in part.
Gutierrez v. Padilla
The plaintiffs bought two automotive supply businesses from the defendant. The plaintiffs alleged that the defendant and the defendant’s broker made representations about the condition of the businesses during the sale and breached various terms of the sale contract. The district court dismissed complaints against the defendant’s broker and awarded damages to both parties regarding alleged actions in regard to the sale contract. The appeals court affirmed the district court’s decisions.
New Mexico Appeals Court Affirms Awards of Damages to Both Parties on Claims of Breach of Contract
The plaintiffs bought two automotive supply businesses from the defendant. The plaintiffs alleged that the defendant and the defendant’s broker made representations about the condition of the businesses during the sale and breached various terms of the sale contract. The district court dismissed complaints against the defendant’s broker and awarded damages to both parties regarding alleged actions in regard to the sale contract. The appeals court affirmed the district court’s decisions.
Business Valuation Case Law Yearbook, 2023 Edition
January 2023 PDF, Softcover (195 pages)
BVR (editor)
Business Valuation Resources, LLC
Donnelly v. ProPharma Grp. Topco LLC
The plaintiff sued for breach of contracts relating to ProPharma’s offer to have Donnelly join the board in 2016 and for not paying him for his incentive equity shares, implemented in 2017, at fair market value. Each side engaged an experienced business valuation expert to opine as to the fair market value of the equity shares. Each side now moved to exclude the testimony of the other side’s expert. The U.S. District Court for the District of Delaware denied the motions of both sides and allowed both experts to testify.
In a Breach of Contract Suit, the U.S. District Court Denies Motions to Exclude Valuation Experts
The plaintiff sued for breach of contracts relating to ProPharma’s offer to have Donnelly join the board in 2016 and for not paying him for his incentive equity shares, implemented in 2017, at fair market value. Each side engaged an experienced business valuation expert to opine as to the fair market value of the equity shares. Each side now moved to exclude the testimony of the other side’s expert. The U.S. District Court for the District of Delaware denied the motions of both sides and allowed both experts to testify.
In re Navidea Biopharmaceuticals Litig.
A pharmaceuticals company sued its former CEO for, among other things, breach of contract and for a declaratory judgment establishing the contractual rights and obligations of the parties. This resulted in counterclaims by the former CEO, Michael Goldberg. Goldberg submitted for testimony of damages Terry Lee Orr, CPA. In this matter, the company sought to exclude Orr’s testimony and, absent his exclusion, to present their own expert, William F. Murray, CPA, as a rebuttal expert. Goldberg sought to exclude the testimony of Murray. The court excluded portions of Orr’s testimony and denied the exclusion of Murray as a rebuttal expert.
U.S. District Court Partially Excludes Witness in Securities Value Case and Allows Rebuttal Witness
A pharmaceuticals company sued its former CEO for, among other things, breach of contract and for a declaratory judgment establishing the contractual rights and obligations of the parties. This resulted in counterclaims by the former CEO, Michael Goldberg. Goldberg submitted for testimony of damages Terry Lee Orr, CPA. In this matter, the company sought to exclude Orr’s testimony and, absent his exclusion, to present their own expert, William F. Murray, CPA, as a rebuttal expert. Goldberg sought to exclude the testimony of Murray. The court excluded portions of Orr’s testimony and denied the exclusion of Murray as a rebuttal expert.
Parties' Motions to Exclude Each Other’s Experts Are Granted in Part and Denied in Part
In this trade secrets and breach of contract case, portions of each expert’s testimony were found to be offering a factual narrative that is within the purview of a lay jury to ascertain. Those portions of testimony were excluded for both experts, but the parties’ arguments as to the qualifications of the experts and supposed reliance of an expert on the work of another were denied.
Redcell Corp. v. A.J. Trucco, Inc.
In this trade secrets and breach of contract case, portions of each expert’s testimony were found to be offering a factual narrative that is within the purview of a lay jury to ascertain. Those portions of testimony were excluded for both experts, but the parties’ arguments as to the qualifications of the experts and supposed reliance of an expert on the work of another were denied.
Ohio Appellate Court Affirms Trial Court’s Denial of Permanent Injunction and Dismisses a Claim of Tortious Interference
An Ohio appellate court affirmed the trial court’s denial of a permanent injunction to the plaintiff because the evidence did not show that it faced immediate and irreparable injury or harm. It was also held that the trial court properly dismissed the plaintiff’s claim for tortious interference because the plaintiff did not allege that the defendant induced a third party not to continue to do business with the plaintiff.
Total Quality Logistics, LLC v. Tucker, Albin and Assocs.
An Ohio appellate court affirmed the trial court’s denial of a permanent injunction to the plaintiff because the evidence did not show that it faced immediate and irreparable injury or harm. It was also held that the trial court properly dismissed the plaintiff’s claim for tortious interference because the plaintiff did not allege that the defendant induced a third party not to continue to do business with the plaintiff.
Experts in, lay witnesses out in damages case
In a Michigan case, there were a number of motions to exclude expert witnesses in a damages case that involved employee poaching in the automotive industry.
Auto Konnect, LLC v BMW of North America, LLC
The U.S. District Court (Michigan) denied motions to exclude the plaintiff’s and the defendant’s expert witnesses and granted motions from both parties to exclude “expert” testimony from lay witnesses. The case involved alleged breach of contract on the part of the defendants regarding raiding of the plaintiff’s employees, and damages related thereto.
U.S. District Court Denies Motions to Exclude Experts but Grants Motions to Exclude Lay Witnesses ‘Expert’ Testimony
The U.S. District Court (Michigan) denied motions to exclude the plaintiff’s and the defendant’s expert witnesses and granted motions from both parties to exclude “expert” testimony from lay witnesses. The case involved alleged breach of contract on the part of the defendants regarding raiding of the plaintiff’s employees, and damages related thereto.
A valuation trial—on papers only?
Yes, but only in New York?
Bougie v. Garth-Niggeman
The case originated at trial court on issues of the buyout of a deceased member’s interest in an LLC restaurant. Among the issues was the use of the LLC’s recipes by the acquirer of the deceased’s interest in violation of the operating agreement. The two remaining LLC members claimed the use of the LLC’s recipes in other restaurants irreparably harmed them. However, the remaining members did not seek, nor did they prove, any damages resulting from the use of the recipes. The appellate court affirmed the trial court’s denial of a permanent injunction against the use of the recipes.
Trial Court’s Denial of Permanent Injunctive Relief for Irreparable Harm Is Upheld
The case originated at trial court on issues of the buyout of a deceased member’s interest in an LLC restaurant. Among the issues was the use of the LLC’s recipes by the acquirer of the deceased’s interest in violation of the operating agreement. The two remaining LLC members claimed the use of the LLC’s recipes in other restaurants irreparably harmed them. However, the remaining members did not seek, nor did they prove, any damages resulting from the use of the recipes. The appellate court affirmed the trial court’s denial of a permanent injunction against the use of the recipes.
Quattro Parent LLC v. Rakib
In this surmised summary judgment as to damages a New York trial court awarded damages to the plaintiff in a breach of contract suit. The determination of damages was made without a trial but “on paper.” Additionally, the court used a subsequent sale of the stock to determine the damages and opine that the company was “worthless.”
New York Trial Court Determines Damages Without a Trial and Uses Subsequent Transaction to Determine the Amount
In this surmised summary judgment as to damages a New York trial court awarded damages to the plaintiff in a breach of contract suit. The determination of damages was made without a trial but “on paper.” Additionally, the court used a subsequent sale of the stock to determine the damages and opine that the company was “worthless.”
Business Valuation Case Law Yearbook, 2022 Edition
January 2022 PDF, Softcover (177 pages)
BVR (editor)
Business Valuation Resources, LLC
The legal coverage and in-depth analysis from the BVR legal team deliver lessons learned to help appraisers reach better and more defensible valuation conclusions. All the cases featured in this book impart important lessons about applicable legal principles, approved and discredited valuation methodology, and the act (and art) of presenting expert opinions. This must-have collection benefits both the generalist as well as the specialist.
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In a Primarily Procedural Ruling, the Michigan Court of Appeals Affirms a Damages Award Including Goodwill
In this primarily procedural ruling, the Michigan Court of Appeals affirmed judgment from a lower court awarding damages, including goodwill, for breach of contract arising from a sale of a medical practice, including goodwill. The plaintiffs claimed that the defendants’ failure to comply with the transfer assistant clauses in the sale contract destroyed the practice goodwill, among other things.
Sherman v. Sherrod
In this primarily procedural ruling, the Michigan Court of Appeals affirmed judgment from a lower court awarding damages, including goodwill, for breach of contract arising from a sale of a medical practice, including goodwill. The plaintiffs claimed that the defendants’ failure to comply with the transfer assistant clauses in the sale contract destroyed the practice goodwill, among other things.
Paganelli v. Lovelace
This case resulted in the court issuing a partial summary judgment in favor of the defendant (and counterclaimant) in a matter regarding a sale/purchase contract between the plaintiff and the defendant. The cross-allegations resulted from the defendant allegedly breaching the purchase contract, while the defendant alleged that the plaintiff first breached the contract and committed fraud in entering into the contract.