Cline v. Sunoco
In class-certification context, court says plaintiff’s damages expert meets Rule 702/Daubert requirements as they apply in early stage of litigation; expert is qualified, and, damages model, even if not fully developed, provides a sufficiently reliable way to calculate damages on classwide basis.
Expert Testimony Offered at Class-Certification Stage Survives Daubert Challenge
In class-certification context, court says plaintiff’s damages expert meets Rule 702/Daubert requirements as they apply in early stage of litigation; expert is qualified, and, damages model, even if not fully developed, provides a sufficiently reliable way to calculate damages on classwide basis.
Reasonable Certainty for New Business Lost Profit Calculations
A recent court decision has provided practical guidance for experts to mitigate concerns over providing speculative, unsupported lost profit estimations for a new business. The author also provides an example of a recent engagement.
Calculating Damages in Intellectual Property Disputes: New Guidance
The 4th edition of the AICPA/CIMA Practice Aid for Calculating Damages in Intellectual Property Disputes is out, and, in the six years since the last edition, damages law and the intellectual property damages climate have changed in many areas. Join Drew Voth and Jeff Press to learn about the changes to the theories, techniques, and oft-cited case law addressed by intellectual property damages experts in the patent, copyright, trademark, and trade secret areas. The AICPA ...
BVU News and Trends July 2019
A monthly roundup of key developments of interest to business valuation experts.
Willamette gives insights into shareholder litigation
The Spring 2019 Insights from Willamette Management Associates focuses on shareholder litigation and is edited by Kevin M. Zanni.
Evolving Issues in Proving Lost Profits in Commercial Litigation
The authors provide a formal model of lost profits with a special focus on measurement of expenses, how “time” is a factor, and special efforts the expert needs to make to reduce the chances of failing a Daubert challenge.
BVU News and Trends April 2019
A monthly roundup of key developments of interest to business valuation experts.
Experts comment on recent Brundle ESOP decision
In its recent Brundle opinion (see last week’s coverage), the 4th Circuit Court of Appeals, in describing the major actors in the case, included a quote (not attributed) that the ESOP world was “a very incestuous community.”
It’s not just about FMV, Brundle ESOP appeals court ruling shows
“Fair market value” is not the only consideration when it comes evaluating the performance of the ESOP trustee, the 4th Circuit made clear in its recent ruling, on which we reported here last week and which represents another milestone in ESOP case law.
4th Circuit upholds Brundle ESOP valuation and damages findings
The 4th Circuit Court of Appeals just affirmed the district court’s ruling against the trustee in the intensely contested Brundle v. Wilmington Trust ESOP case, including the district court’s valuation and damages findings.
Economic damages culminate suit over war journalist’s extrajudicial killing
A civil suit arising out of the “deliberated” killing of a well-respected American war correspondent illustrates that valuation and damages issues play a critical role in most litigation.
Post-trial briefs in Vinoskey ESOP trial point to fierce valuation fight
The DOL’s aggressive oversight strategy concerning ESOPs has led to a number of controversial lawsuits, including, most recently, the Acosta v. Vinoskey case, which, in the past few months, went to trial over the DOL's overpayment claim.
2018 Key Business Valuation and Damages Cases
Choices for the most interesting and pivotal court cases of 2018 involving business valuation issues.
Expert’s inability to defend income analysis ‘is decidedly troubling,’ court says
Judges are alert to incongruities in valuations, as is clear from a recent condemnation case in which landowners hired three experts to calculate the compensation owed to them.
Olive v. General Nutrition Centers
In IP case, appeals court upholds exclusion of expert testimony; one expert’s damages analysis was based on speculative assumptions as to link between increase in defendant’s revenue and infringement; second expert’s analysis was inadmissible, hinging on first expert’s unreliable opinion.
Meridian Mfg. v. C&B Mfg.
Court admits expert opinion that reasonable royalty cannot exceed cost of developing noninfringing alternative because opinion is based on facts of the case; court excludes opposing expert’s royalty because he failed to assess comparability of selected licenses to patented technology.
Underdeveloped Comparability Analysis Means Exclusion of Reasonable Royalty Opinion
Court admits expert opinion that reasonable royalty cannot exceed cost of developing noninfringing alternative because opinion is based on facts of the case; court excludes opposing expert’s royalty because he failed to assess comparability of selected licenses to patented technology.
Courts are alert to valuations unmoored from the facts
Perhaps experts feel pressure from the hiring attorney or the client, perhaps they are unable to access key documents or information, or perhaps they simply lack valuation and litigation experience.
Expert’s Failure to Explain Basis for Compensation Analysis Renders Testimony Inadmissible
In condemnation case requiring fair market value analysis to determine compensation due to landowners, court excludes defense expert testimony, citing failure to follow mandated methodology and standard of value; court calls aspects of loss calculation based on income approach “disturbing.”
Rover Pipeline LLC v. 10.55 Acres
In condemnation case requiring fair market value analysis to determine compensation due to landowners, court excludes defense expert testimony, citing failure to follow mandated methodology and standard of value; court calls aspects of loss calculation based on income approach “disturbing.”
Tips and Takeaways From the NYSSCPA BV Conference
BVU attended the annual business valuation conference of the New York State Society of CPAs (NYSSCPA) on May 21 in New York City. As usual, it was an excellent conference, and here are a few takeaways from the sessions.
Tips and takeaways from the NYSSCPA BV event
BVWire attended the annual business valuation conference of the New York State Society of CPAs (NYSSCPA) on May 21 in New York City.
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
Damages Claim Fails to Provide Yardsticks Capturing Defunct Startup’s Value
Appeals court upholds zero damages finding in dispute involving short-lived software startup, where plaintiff’s expert had no experience valuing software companies, misapprehended basic facts, and developed multimillion-dollar valuations for a company with no product, no revenue, and no investors.