Precision Kidd Acquisition, LLC v. Pass
In merger-related damages case, court upholds damages based on profits lost from key client’s termination of supply agreement with seller company; trial court properly rejected buyer expert’s DCF-based loss analysis which, among other flaws, overstated value of lost contract to seller company.
Proper Damages Measure Is Lost Profits Calculation, Not DCF-Based Loss Analysis
In merger-related damages case, court upholds damages based on profits lost from key client’s termination of supply agreement with seller company; trial court properly rejected buyer expert’s DCF-based loss analysis which, among other flaws, overstated value of lost contract to seller company.
In COVID-19 Business Interruption Case, Court Finds Business Cannot Show Insurer’s Coverage Denial Breached Contract
In business interruption case resulting from mandatory shutdowns to control COVID-19, court finds plaintiff chiropractic clinic failed to show insurer breached its policy; court says plaintiff did not demonstrate “tangible damage” to property and failed to overcome policy’s express virus exclusion.
Turek Enterprises, Inc. v. State Farm Mutual Automobile Insurance Co.
In business interruption case resulting from mandatory shutdowns to control COVID-19, court finds plaintiff chiropractic clinic failed to show insurer breached its policy; court says plaintiff did not demonstrate “tangible damage” to property and failed to overcome policy’s express virus exclusion.
Judicial panel resistant to consolidating COVID-19 business interruption litigation
Responding to requests by plaintiffs who are pursuing lawsuits against insurers for COVID-19-related business losses, the Judicial Panel on Multidistrict Litigation (JPML Panel) recently rejected two proposals for centralization.
Courts are weighing in on COVID-19 business interruption claims
COVID-19-related business interruption cases are winding their way through the court system, and one state court, in a matter of first impression, recently issued a decision against the business owner.
Court ‘Sympathizes’ With Businesses Claiming COVID-19-Related Losses but Finds No Coverage Under Policy
In a business interruption case resulting from mandatory shutdowns to control COVID-19, court dismisses plaintiff barbershops’ claims against insurance company; plaintiffs failed to show accidental direct physical loss to premises as required for coverage and did not overcome express virus exclusion.
Diesel Barbershop, LLC v. State Farm Lloyds
In a business interruption case resulting from mandatory shutdowns to control COVID-19, court dismisses plaintiff barbershops’ claims against insurance company; plaintiffs failed to show accidental direct physical loss to premises as required for coverage and did not overcome express virus exclusion.
Rose’s 1, LLC v. Erie Ins. Exch.
D.C. court, ruling on parties’ motions for summary judgment, finds restaurant owners cannot show that mayor’s COVID-19-related closure orders constituted “direct physical loss” to the property, as required under the existing business interruption policy; court rules for insurer and closes case.
Court Says Restaurants Fail to Meet Requirements for COVID-19-Related Business Interruption Coverage
D.C. court, ruling on parties’ motions for summary judgment, finds restaurant owners cannot show that mayor’s COVID-19-related closure orders constituted “direct physical loss” to the property, as required under the existing business interruption policy; court rules for insurer and closes case.
BVU News and Trends July 2020
A monthly roundup of key developments of interest to business valuation experts.
Michigan court decides COVID-19 business interruption claim; many more cases in the pipeline
COVID-19-related business interruption cases are winding their way through the court system, and one state court, in a matter of first impression, recently issued a decision.
BVU News and Trends June 2020
A monthly roundup of key developments of interest to business valuation experts.
NetOne, Inc. v. Panache Destination Management
Court says plaintiff fails to show defendant breached contract in COVID-19-related damages case; plaintiff’s invocation of force majeure clause is futile where clause is silent as to whether plaintiff has a right to full deposit after termination of contract due to imposed travel restrictions.
Plaintiff’s COVID-Related Contract Claim Falters Despite Force Majeure Provision
Court says plaintiff fails to show defendant breached contract in COVID-19-related damages case; plaintiff’s invocation of force majeure clause is futile where clause is silent as to whether plaintiff has a right to full deposit after termination of contract due to imposed travel restrictions.
Business interruption trends and cases triggered by COVID-19
The gleaming billboards of Times Square went dark on May 27 for one minute to alert the nation that pandemic-related business interruption insurance claims are being denied by insurers.
BVU News and Trends May 2020
A monthly roundup of key developments of interest to business valuation experts.
Does business interruption insurance decrease company-specific risk?
Business valuers often ‘tic the box’ on property and casualty insurance policies as part of their management interviews.
No act of God excuse for Victoria’s Secret buyer—February agreement excepted pandemic
In the wake of COVID-19, a number of buyers have resorted to force majeure (aka act of God) clauses to withdraw from deals.
Business interruption cases and the role financial experts can play
Filing a business interruption claim has become one of the go-to moves for businesses as they try to mitigate the impact of COVID-19. A discussion of two cases that were adjudicated just before the COVID-19 crisis came into relief explains the trajectory many claims, including claims arising out of the COVID-19 crisis, may take and points to opportunities for damages experts.
Force Majeure: Examining the Post COVID-19 Intercompany Agreement Reality
As COVID-19 continues to shift everyday life and the global economy, accounting professionals are looking for information to help guide their clients through these trying times. These organizations will lean on their in-house experience and should pay close attention to the lessons learned during the 2008 market crisis. Force Majeure is a clause included within an agreement that is commonly referred to as the “Act of God” clause.
Business interruption cases and the role financial experts can play
To mitigate the impact of COVID-19, business owners have increasingly turned to business interruption insurance.
Binghamton Precast & Supply Corp. v Liberty Mutual Fire Insurance Co.
In dispute over business interruption insurance coverage, appellate court says plaintiff showed actual loss of business income within meaning of controlling policy; court rejects defendant’s argument that plaintiff had to show lost sales, saying this is not a reasonable interpretation of policy.
Court Affirms Plaintiff’s Showing of Loss of Income Pursuant to Business Interruption Policy
In dispute over business interruption insurance coverage, appellate court says plaintiff showed actual loss of business income within meaning of controlling policy; court rejects defendant’s argument that plaintiff had to show lost sales, saying this is not a reasonable interpretation of policy.
Legal avenues for businesses coping with COVID-19 disruption and damages
In Franchising in the Time of COVID-19, an ABA panel recently discussed the scope of the disruption the pandemic has caused for franchisees and franchisors as well as legal doctrines on which franchisees/franchisors might rely to deal with the monetary damages to their businesses.