Fredericks Peebles & Morgan LLP v. Assam
In buyout dispute over law firm interest, court credits firm’s expert, noting his extensive relevant experience, his taking care to value interest under fair market value standard, as required by the partnership agreement, and his detailed risk analysis to support a deep discount.
Lack of Facts and Data Render Expert’s Fair Value Balance Sheet Not Helpful
Bankruptcy Court excludes as unreliable and irrelevant expert’s solvency opinion and balance sheet; court says expert lacked the facts and data necessary to enact his chosen method and “failed in numerous ways” to reliably apply the facts and data in accordance with the selected method.
Weinman v. Crowley (In re Blair)
Bankruptcy Court excludes as unreliable and irrelevant expert’s solvency opinion and balance sheet; court says expert lacked the facts and data necessary to enact his chosen method and “failed in numerous ways” to reliably apply the facts and data in accordance with the selected method.
DOL backs judgment against trustee in Brundle ESOP litigation
In the fiercely litigated Brundle v. Wilmington Trust ESOP case, in which the district court concluded the ESOP trustee had caused the plan to overpay by almost $29.8 million, the trustee has appealed and outside interests have started to weigh in.
ASA squarely aligns itself with trustee and appraiser in Brundle ESOP litigation
One of the most controversial ESOP cases, Brundle v. Wilmington Trust, has now entered the appeals court phase. In 2017, the district court found that the trustee had caused the plan to overpay by $29.8 million by failing to scrutinize the financial advisor’s obviously flawed valuation analysis and value conclusions. The trustee and valuator had strong ESOP credentials.
ASA vigorously supports trustee and appraiser in Brundle ESOP litigation
Readers may remember the 2017 Brundle v. Wilmington Trust case in which the district court concluded the ESOP trustee had caused the plan to overpay by almost $28 million.
‘Lady Liberty’ Stamp Costs USPS Millions in Copyright Infringement
Court finds USPS’s unauthorized use of image of Las Vegas Lady Liberty on stamps infringed creator’s copyright and awards damages resulting from a hypothetical mixed license; USPS’s unique licensing history does not limit damages under applicable fair market value measure of damages.
Davidson v. United States
Court finds USPS’s unauthorized use of image of Las Vegas Lady Liberty on stamps infringed creator’s copyright and awards damages resulting from a hypothetical mixed license; USPS’s unique licensing history does not limit damages under applicable fair market value measure of damages.
Louisiana Appeals Court Affirms Use of Discounts in LLC Valuations
Appeals court supports trial court’s decision to value departing member’s minority interest on fair market value basis pursuant to state statute rather than method specified in some existing corporate documents; appeals court affirms lower court’s discretion to apply post-Cannon discounts.
Wall v. Bryan
Appeals court supports trial court’s decision to value departing member’s minority interest on fair market value basis pursuant to state statute rather than method specified in some existing corporate documents; appeals court affirms lower court’s discretion to apply post-Cannon discounts.
Important bankruptcy ruling on how to value oil and gas assets
Valuing oil and gas assets requires special expertise, as is evident from a recent bankruptcy ruling that includes a thorough examination of the parties’ valuation evidence.
Hebert v. Cote
In appreciation in value case, court excludes nonowner spouse’s valuation testimony under Daubert, finding expert’s calculation of “minimum marital component” is not a methodology approved under the applicable SSVS for determining fair market value and also violated other SSVS requirements.
Court Rejects Appreciation in Value Calculation, Citing SSVS Violations
In appreciation in value case, court excludes nonowner spouse’s valuation testimony under Daubert, finding expert’s calculation of “minimum marital component” is not a methodology approved under the applicable SSVS for determining fair market value and also violated other SSVS requirements.
ESOP settlement involves Vermont company
Vermont Business Magazine recently reported that the DOL settled its ESOP litigation involving First Bankers Trust Services (FBTS) and the principals of a Vermont company, Sonnax Industries, the maker of automatic transmission parts.
ESOP case alive (for now), but court limits damages testimony under Daubert
In a developing ESOP case, the government recently suffered a setback when the court agreed with the trustee that portions of the damages testimony the government’s expert proposed failed to hold up under the Daubert reliability prong.
DOL sues over ESOP; trustee launches Daubert attack
In a developing ESOP case, the court recently excluded a chunk of the government expert’s damages testimony and dismissed one of the counts for lack of damages evidence.
Trustee Succeeds in Curtailing DOL Expert Testimony Under Daubert
In ESOP dispute, court partially excludes DOL expert’s damages analysis under Daubert; court finds expert’s market comparable approach to support overpayment claim is unreliable as is expert’s methodology for calculating alleged loss in stock value to existing shareholders.
Acosta v. Vinoskey
In ESOP dispute, court partially excludes DOL expert’s damages analysis under Daubert; court finds expert’s market comparable approach to support overpayment claim is unreliable as is expert’s methodology for calculating alleged loss in stock value to existing shareholders.
New York’s high court OKs minority discount in wrongful dissolution context
New York’s highest court recently weighed in on a long and ugly partnership dispute in which a minority shareholder had unilaterally dissolved the partnership.
Ohio Appeals Court Approves Use of Fair Value Standard in Valuing Farm Entities
Appeals court upholds valuation of minority interest in farm entities based on fair value standard of value; court notes prevailing expert specifically referenced buy-sell agreements that did not contemplate use of discounts in valuing exiting member’s partial interest.
Tate v. Tate
Appeals court upholds valuation of minority interest in farm entities based on fair value standard of value; court notes prevailing expert specifically referenced buy-sell agreements that did not contemplate use of discounts in valuing exiting member’s partial interest.
Re: Comments Concerning S Corp Tax-Affecting Article
Comments on the response from James Alerding to an article on tax affecting S corps, which appeared in the December 2017 edition of Business Valuation Update titled “Tax Affecting S Corporations: It’s Not a Matter of Whether. It’s a Matter of When.”
Courts Find Minority Discount Unwarranted Under Facts of Case
In valuing owner-spouse’s minority interest in LLC, trial court “would have been well within its discretion to apply a minority discount,” appeals court says, but it was not error for trial court to reject a discount based on certain questionable actions related to the owner’s interest.
Cobane v. Cobane
In valuing owner-spouse’s minority interest in LLC, trial court “would have been well within its discretion to apply a minority discount,” appeals court says, but it was not error for trial court to reject a discount based on certain questionable actions related to the owner’s interest.
Court Credits Debtor’s Asset Valuations but Rejects Chapter 11 Plan
Court finds debtor is hopelessly insolvent; court values two types of oil and gas assets under NAV and precedent transaction analyses, respectively, finding, in terms of NAV analysis, debtor’s expert is more credible on issues of pricing, forecasting, risking, and predicting costs.