Court Trusts Process to Test Expert’s Calculation of Value
Calculation reports periodically become a point of contention in litigation in trial and appeals courts. Courts have responded in different ways to questions about their usefulness and reliability. A recent case explores the issue of whether expert testimony based on a calculation of value is admissible under Daubert. Prior to marriage, the husband founded a company that marketed and sold Steel Seal, a car repair product that sealed blown head gaskets. The company ...
Hipple v. SCIX, LLC
Trial court finds plaintiff expert’s testimony based on a calculation of value instead of a full appraisal is admissible under Daubert because it is a form of engagements approved by the AICPA and the expert explained his methodology and assumptions.
A.C. v. J.O.
In divorce case, New York trial court prefers excess earnings over price-to-revenue method to value wife’s dental practice, because the former accounts for the business’s lack of tangible assets—a fact specific to professional offices in New York where re ...
In re Marriage of Price and Turkanis
Court approves use of comparable sales data in valuing high-tech startup company, even though comparable transactions took place within one year after the valuation date.
More Problems With Using Preliminary Valuations in Divorce
Court rejects accountant’s preliminary valuation as lacking sufficient financial support to evidence value of marital business.
In re Marriage of Cantarella
Court rejects accountant’s preliminary valuation as lacking sufficient financial support to evidence value of marital business.
In re Marriage of Hagar
Court declines to accept “calculation of value” by CPA expert in divorce, because it relied on industry rules of thumb and lacked required level of judgment compared to complete valuation.