Minority Shareholder Receives Award of $12 Million for Breach of Contract, $58 Million Buyout Award for Minority Interest
This shareholder dispute case involved two businesses three brothers in Minnesota owned. One of the brothers, Jim Koch, had a falling out with the other two, Randy and Dave Koch. A temporary agreement was made among them in 2006, but subsequently the relationship and actions of the parties deteriorated. In particular, an IRS audit of the two businesses triggered a disagreement as to whether required payments under the agreement had to be tax deductible. Certain actions by the defendants breached the 2006 agreement as determined by a jury resulting in a damages award of $12 million. The court then held a bench trial to determine the value of the two businesses for determining the buyout amount for Jim’s interest in both businesses. Experts for each side testified as to value. The opinion provided a good analysis of the various issues in the methodologies each of the experts used.
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.
Proposed Rule 702 Change Targets Unqualified Experts
Too many experts who are not qualified are being allowed to testify in court, and this has triggered proposed changes to strengthen Rule 702, which is the federal rule of evidence regarding testifying experts.
BV News and Trends April 2022
A monthly roundup of key developments of interest to business valuation experts.
So You Want to Testify as a Financial Expert Witness? Testimony Tips, Traps and Video Demonstrations From the Trenches
Learn how to testify in bench and jury trials and depositions from a seasoned forensic CPA who has testified in the trenches for 27 years. See video clips from an actual testimony by Robert Vance and from popular TV shows and movies (which are mostly very humorous) to learn how to answer questions and keep your cool. Receive tips on how to construct your litigation-oriented curriculum vitae and engagement letter. Get prepared for subpoenas, Daubert ...
Additional Takeaways From the 2021 ASA International Conference
Interesting sessions covering risk-free rates, equity risk premia, expert testimony, appraisal reviews, cannabis valuations, and more from the American Society of Appraisers’ International Conference, held in Las Vegas.
BV News and Trends March 2022
A monthly roundup of key developments of interest to business valuation experts.
Proposed rule change cracks down on testifying experts
Too many experts who are not qualified are being allowed to testify in court, and this has triggered proposed changes to strengthen Rule 702, which is the federal rule of evidence regarding testifying experts.
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.
Questions a Trier of Fact Will Ask About Your Valuation
The fear of every valuation analyst is to be unprepared to answer a question in a deposition or on the witness stand. Here are some questions a judge or attorney will likely ask, either directed to themselves when reviewing your report or directly to you.
Appellate court KOs damages method for soybean farm
A CPA who specializes in damages used three ways to calculate damages to a Louisiana soybean farm caused by someone who was supposed to be checking for insects.
Sponsorships available for the AAML/BVR National Divorce Conference
Want to reach out to divorce attorneys?
BVLaw Review: The Top Valuation Cases of 2021
Here is our pick for the state and federal court decisions that enhanced our understanding of valuation issues as they arose in a litigation setting during 2021.
BV News and Trends January 2021
A monthly roundup of key developments of interest to business valuation experts.
Details start to emerge about the Prince estate valuation
One of the tricky assets to value in the Prince estate was the rock star’s name and likeness.
Latest editions of two BVR yearbooks now available
Over 70 articles and hundreds of news items are included in the Business Valuation Update Yearbook, 2022 edition.
Poll: Some BVers say ‘no way’ to testifying in court
About one in five (18%) of business valuation experts who do divorce cases have no interest in testifying in court, according to a recent poll.
Dates set for AAML/BVR National Divorce Conference
If you do any valuation work for divorce, you do not want to miss the National Divorce Conference, brought to you by the American Academy of Matrimonial Lawyers (AAML) and Business Valuation Resources (BVR).
Prince estate and IRS settle valuation dispute
The IRS and Comerica Bank and Trust, the administrator of the estate of rock star Prince, have agreed to settle their dispute and agree on an estate value of $156.4 million, according to settlement documents submitted in the case.
Silver lining to Vinoskey ESOP appeal decision
In the well-publicized Vinoskey ESOP case (our latest coverage is here), the appellate court affirmed the district court in deciding that the company owner had extensive knowledge about the company and its prior valuations, and, thus, it was plausible to infer that “something was off.”
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.
Learn more >>
Journal of Business Valuation 2021 Edition
From the CBV Institute ...
Xodus Med. v. Prime Med. (I)
This was a patent infringement case related to technology "related to patient slippage within the context of the Trendelenburg position for surgery—when using a viscoelastic foam." Justin Blok was the defendants’ damages expert. The plaintiffs sought to exclude Blok’s testimony on the reasonable royalty because they contended he used unreliable and irrelevant documents to support his opinion. The defendants argued, and the court agreed, that Blok’s opinions go to the weight and not to the admissibility of his opinions.
Court Denies Plaintiffs’ Motion to Exclude Expert Testimony—The Subject of the Testimony Goes to the Weight and Not the Admissibility
This was a patent infringement case related to technology "related to patient slippage within the context of the Trendelenburg position for surgery—when using a viscoelastic foam." Justin Blok was the defendants’ damages expert. The plaintiffs sought to exclude Blok’s testimony on the reasonable royalty because they contended he used unreliable and irrelevant documents to support his opinion. The defendants argued, and the court agreed, that Blok’s opinions go to the weight and not to the admissibility of his opinions.