Obsolescence Analysis Kills Tax Court’s Property Valuation
State high court rejects tax court’s external obsolescence calculation related to special purpose property valuation, finding it represents an insufficiently explained departure from the methods the parties’ experts used and lacks support in the record.
Expert’s Application of Asset Approach ‘Defies Common Sense’
Court rejects income approach for valuing interest in business with low bar of entry and few repeat customers; court also says asset-based valuation following Section 179 tax treatment understates true value of the company and requires upward adjustment.
Appraiser Lacks Necessary Valuation Expertise, Dissent Says
Court majority finds appointed appraiser’s fair value determination meets legal requirements applicable to dissenting shareholder proceeding; dissent says appraiser lacked valuation expertise and ignored proper business valuations from parties’ experts.
Appraiser Lacks Necessary Valuation Expertise, Dissent Says
Court majority finds appointed appraiser’s fair value determination meets legal requirements applicable to dissenting shareholder proceeding; dissent says appraiser lacked valuation expertise and ignored proper business valuations from parties’ experts.
Gifford v Gifford
New York appellate court finds trial court’s spousal support determination violated double counting rule where expert valued husband’s solely owned engineering company based on an income approach and the business was a service business.
Lane v. Lampkin (II)
State high court strikes down trial court’s damages assessment because it included values from a business valuation when the applicable law required an analysis of the entire loss suffered by a corporation owing to a partner’s breach of fiduciary duty.
Settele v. Settele
Appeals court rejects claim that accounts receivable used in asset-based business valuation by wife’s expert are analogous to future income stream for purposes of arguing double dip in light of income determination for spousal support award.
No Place for Asset Appraisal in Trust Dispute, Court Says
In trust dispute, appeals court affirms trial court’s exclusion of expert’s “asset appraisal and valuation,” finding business valuator’s approach for measuring damages was inconsistent with scope of the case, irrelevant, and not helpful to trier of fact.
Guardian Energy, LLC v. County of Waseca
State high court rejects tax court’s external obsolescence calculation related to special purpose property valuation, finding it represents an insufficiently explained departure from the methods the parties’ experts used and lacks support in the record.
Hewlett-Packard Co. v. Benton Cnty. Assessor
Tax court adopts taxpayer expert’s value of the loss determination underlying real market valuation of industrial plant; state’s high court affirms but notes unresolved contradiction in financial feasibility analysis underpinning expert’s final valuation.
In re Marriage of Hartung
Court rejects income approach for valuing interest in business with low bar of entry and few repeat customers; court also says asset-based valuation following Section 179 tax treatment understates true value of the company and requires upward adjustment.
Shaffer v. Visaggio’s, Inc. (I)
Court majority finds appointed appraiser’s fair value determination meets legal requirements applicable to dissenting shareholder proceeding; dissent says appraiser lacked valuation expertise and ignored proper business valuations from parties’ experts.
Shaffer v. Visaggio’s, Inc. (II)
Court majority finds appointed appraiser’s fair value determination meets legal requirements applicable to dissenting shareholder proceeding; dissent says appraiser lacked valuation expertise and ignored proper business valuations from parties’ experts.
Court Affirms Rightness of Expert’s ‘Marital Value’ Calculation
Court upholds expert’s idiosyncratic valuation approach based on ascertaining “marital value” of community’s grocery stores as opposed to stores’ “investment value”; since the stores were not sold, valuation properly captured their value to owner spouse.
Asset Approach Avoids Double Counting of Future Earnings
Appeals court affirms trial court’s decision favoring asset approach for valuing owner spouse’s medical practices; unlike income approach, it avoids accounting for owner spouse’s future earning twice, in asset valuation and determination of alimony.
Court Backs Away From Support for Double-Dip Theory
In a divorce case involving dental practice, appeals court says using income stream “as a tool” to value a professional business and then using it “as actual income for a spousal support calculation” does not per se amount to impermissible double dipping.
Court Rejects Flat Prohibition Against Double Dipping
Appeals court finds Ohio statute requires trial court to consider income from all sources in calculating spousal support and overrules Heller I to extent Heller imposes a flat prohibition against double dipping; mandate is to ensure fairness and equity.
Cartwright v. Jackson Capital Partners, Ltd. P'ship
In trust dispute, appeals court affirms trial court’s exclusion of expert’s “asset appraisal and valuation,” finding business valuator’s approach for measuring damages was inconsistent with scope of the case, irrelevant, and not helpful to trier of fact.
Callahan v. Callahan
Appellate court says trial court did not double dip where it predicated its alimony order on husband’s general earning capacity, independent of husband’s employment at companies that were marital assets subject to property division.
Court Rejects Double-Dip Claim, Emphasizing Owner’s General Earning Capacity
Appellate court says trial court did not double dip where it predicated its alimony order on husband’s general earning capacity, independent of husband’s employment at companies that were marital assets subject to property division.
Valuators in Taking Case Disagree Over Measure of Damages
Court deems expert’s discretionary cash flow analysis an appropriate formula for determining loss to owner of expropriated business but says compensation calculation may be based on other methods, including rule of thumb guide for selling donut shop.