Connecticut Supreme Court Clarifies Double Counting Rule in Divorce Cases Involving Valuation of a Business and Determination of Alimony
In this divorce case, the Connecticut Supreme Court, overturning the appellate court, clarifies that awarding the nonowner spouse part of the value of the owner spouse’s businesses and basing alimony on income generated from the businesses is not impermissible double counting (double dipping).
New evolving ESOP case raises familiar valuation-related issues
A new ESOP litigation is underway in federal district court related to a 2011 transaction in which the majority owner of the company sold his remaining stock to the company’s ESOP.
In Buyout Dispute, Appeals Court Finds There Was No Basis for Jury to Set Aside Appraisers’ Contractually Mandated Value Determination
In buyout dispute, appeals court reverses trial court’s judgment, finding it was based on jury’s erroneous decision to set aside a contractually mandated appraisal and provide its own buyout price; there was no indication the appraisers misinterpreted the controlling partnership agreement; court remands.
Parrish v. Schroering
In buyout dispute, appeals court reverses trial court’s judgment, finding it was based on jury’s erroneous decision to set aside a contractually mandated appraisal and provide its own buyout price; there was no indication the appraisers misinterpreted the controlling partnership agreement; court remands ...
Tax changes to watch for under the Biden administration
Other than the possibility of changing corporate tax rates, there is “nothing of earth-shattering importance” in terms of tax, estate, and regulatory changes expected from the Biden administration—for now, anyway—according to a panel of valuation experts on a recent BVR webinar.
Ryan Trust v. Ryan
In family buyout dispute, state high court affirms trial court’s decision to adopt expert valuation testimony for selling majority shareholder, finding expert’s DCF inputs were reasonable as was selection of multiple of earnings in GPTC analysis; expert’s explanation for S corp premium was convincing.
State Supreme Court Affirms Adoption of Selling Shareholder’s Expert Value Findings
In family buyout dispute, state high court affirms trial court’s decision to adopt expert valuation testimony for selling majority shareholder, finding expert’s DCF inputs were reasonable as was selection of multiple of earnings in GPTC analysis; expert’s explanation for S corp premium was convincing.
Goodwill analysis ignoring specifics crumbles on appeal
A divorce expert’s failure to link the facts related to a successful insurance company to his personal goodwill analysis was one of the reasons a Florida appeals court recently overturned the trial court’s valuation findings, which, the reviewing court said, were not based on competent, substantial evidence.
Tax Court allows for ‘slight’ discount for lack of control for majority interests in real estate holding companies
In a gift and estate tax dispute, the estate and Internal Revenue Service agreed to apply discounts for lack of control and marketability to the majority interests in a number of real estate holding companies.
Federal Circuit explains concept of ‘built-in’ apportionment
The Federal Circuit, in ruling on a patent infringement case involving two major pharmaceutical companies, recently clarified the apportionment requirement.
Whitesell Corp. v. Electrolux Home Prods.
In this Rule 26 discovery case, court says sanctions are inappropriate where the defendant had no duty to disclose its expert’s “intermediary” working paper; however, sanctions are appropriate related to the expert’s miscalculations; court finds expert testimony is admissible under Daubert.
Scalia v. Reliance Trust Co.
In an evolving ESOP case, court says DOL’s allegations that ESOP trustee and various directors engaged in breaches of fiduciary duties and caused the ESOP to enter a prohibited transaction (i.e., overpaid for company stock) require “fact-intensive inquiry” and cannot be resolved on summary judgment.
Expert’s Damages Testimony Prompts Motion for Sanctions and Motion to Exclude Under Daubert
In this Rule 26 discovery case, court says sanctions are inappropriate where the defendant had no duty to disclose its expert’s “intermediary” working paper; however, sanctions are appropriate related to the expert’s miscalculations; court finds expert testimony is admissible under Daubert.
Court Says DOL Claims in ESOP Case Require ‘Fact-Intensive Inquiry’ and Denies Motions for Summary Judgment
In an evolving ESOP case, court says DOL’s allegations that ESOP trustee and various directors engaged in breaches of fiduciary duties and caused the ESOP to enter a prohibited transaction (i.e., overpaid for company stock) require “fact-intensive inquiry” and cannot be resolved on summary judgment.
BVU News and Trends February 2021
A monthly roundup of key developments of interest to business valuation experts.
LLC buyout at fair value poses ‘conundrum’ for the court
In allowing LLC members to buy out a departing member to avoid the dissolution of the company, a court had to determine the fair value of the departing member’s interest in a holding company.
The Top Valuation and Damages Cases of 2020
Our pick of valuation-related court cases includes state and federal court decisions covering many areas of law that dealt with novel issues of law or, in some way, enhanced our understanding of valuation and damages issues as they arose in a litigation setting.
Two new resources recap the year 2020 in BV
A lot happened in 2020 in the business valuation profession other than COVID-19, and you can get caught up on the impacts of the pandemic—and everything else—with two new guides from BVR.
Delaware court weighs in on goodwill in sole proprietorships
A recent divorce case out of Delaware is significant for addressing the treatment of goodwill where the business is a sole proprietorship.
Prince estate and IRS embroiled in fierce valuation dispute
A recent article in the Star Tribune says the executor of the estate of Prince, the late world-famous rock star, and the Internal Revenue Service are currently locked in a fierce estate and gift tax dispute.
2020 Top Business Valuation and Damages Cases
Complicated as the year 2020 was, it was not boring. The past year offered a wealth of lawsuits dealing with business valuation and economic damages issues. The list below shows our Top 10.
Vinoskey reply brief refutes DOL’s stock value and control claims
Argument continues in the contentious Vinoskey ESOP litigation, which is now in the 4th Circuit where the remaining defendant, Adam Vinoskey, has appealed the district court’s liability and damages findings.
BVU News and Trends December 2020
A monthly roundup of key developments of interest to business valuation experts.
In re Kinser Group LLC
In § 506(a) hotel valuations, bankruptcy court finds creditor’s experienced expert premised appraisals on “fundamentally flawed” base assumption that hotels would be sold on the valuation date, where debtor’s plan said debtor would retain and operate hotels; court said replacement value applied.
Expert’s Failure to Review Debtor’s Reorganization Plan Results in ‘Defective’ Hotel Appraisals
In § 506(a) hotel valuations, bankruptcy court finds creditor’s experienced expert premised appraisals on “fundamentally flawed” base assumption that hotels would be sold on the valuation date, where debtor’s plan said debtor would retain and operate hotels; court said replacement value applied.