Bessemer Trust Company, N.A., v. Francis S. Branin, Jr.
Court decides whether lost profits or market value is the most accurate measure of damages in this goodwill impairment case.
Update: Damages Award in Celebrity Cruise Case
Damages case comes back for a third—and perhaps final—tour.
Business Valuation Cases in Brief
Business Valuation Cases in Brief by John J. Stockdale, Jr., JD Estate Valuations In the Estate of Farnam v. CIR, 130 T.C. No. 2 (February 4, 2008), the U.S. Tax Court concluded that loans made to a family business may not be aggregated with equity interests in that business in order to satisfy the 50% ‘‘interest’’ requirement needed to qualify for the family-owned business tax exemption. The court con- cluded that interest as used in ...
Guang Dong v. ACI International, Inc.
In the absence of actual data, expert relies on emails and depositions to arrive at lost profits value.
Celebrity Cruises, Inc. v. Essef Corp. (II)
Damages case comes back for a third—and perhaps final—tour.
Holes in Economic Damages Model Preclude Admission under FRE 702
Economic damages models fail for faulty assumptions based on unverified sales forecasts and growth expectations for distributor of surgical instruments.
Fisherman Surgical Instruments, LLC v. Tri-Anim Health Services, Inc.
Economic damages models fail for faulty assumptions based on unverified sales forecasts and growth expectations for distributor of surgical instruments.
Reversal of Fortune: $1.45 Billion Verdict Vacated for Lack of Fraud-Free Valuation
Court reverses $1.45 billion jury verdict based on lack of “fraud-free” valuation of securities.
Court Questions Whether Non-BV Expert May Testify to Lost Profits/Damages
In case of stolen employees (breach of noncompetes), a report from non-BV expert fails to provide reliable basis for lost profits, economic damages calculation.
Two Economic Damages Cases Dismissed for Lack of Reliable Valuation Evidence
As Nancy Fannon explained in her BVU article last month, “What Every Valuation Expert Needs to Know to Prepare a Lost Profits Calculation,” courts have “set the bar high for opinion evidence offered by the damages expert, rejecting speculative and problematic testimony."
Court Reverses $190 Million Damages Award, Finding Faulty Valuation ‘Yardstick’
Court vacates $190 million lost profits/lost enterprise value award based on flawed comparables and financial analysis.
Try Hours, Inc. v. David L. Swartz, et al.
The Court of Appeals of Ohio reversed the trial court’s granting of summary judgment for defendants on the basis that plaintiff’s damages were speculative and that the methodology used by plaintiff’s expert to calculate lost profits was flawed. The reviewing court found that the damages calculation gave rise to genuine issues of material fact that precluded the summary dismissal of plaintiff’s claims.
Morgan Stanley & Co. Inc. v. Coleman (Parent) Holdings Inc.
Florida Court of Appeals reverses largest jury verdict to date for economic damages ($1.45 billion) for lack of "fraud-free" evidence related to claims that investment bank helped to fraudulently inflate the value of plaintiff's target acquisition (Sunbea ...
TruGreen Companies, L.L.C. v. Scotts Lawn Service, et al.
In case of stolen employees (breach of non-competes), a report from non-BV expert fails to provide reliable basis for lost profits, economic damages calculation.
Gordon Partners v. Blumenthal
Hedge fund unable to prove damages from securities fraud without an expert analysis of market conditions and effect of public information on stock prices.
Celebrity Cruises, Inc. v. Essef Corp. (I)
Court vacates $190 million lost profits/lost enterprise value award based on flawed comparables and financial analysis.
‘9/11 Defense’ Fails to Justify Unfair Merger
A “9/11 defense” fails to obviate unfair merger price, and valuation highlights difficulties inherent in assessing specific and small-company risk in overseas markets.
Silver Valley Propane, Inc. v. Lamanco, Inc.
The California Court of Appeals, Fourth District, affirmed a lower court’s grant of a motion for a new trial on damages where it determined that the lost profits were computed using the wrong measure of damages because they were calculated using gross pro ...
Bero Motors, Inc. v. General Motors Corporation
The Michigan Court of Appeals concluded that a lower court did not abuse its discretion when it admitted economic experts testifying to the quantum of lost profits in this breach of contract action.
Lost Profits Award Based on Comparable Dealerships and Management Projections Affirmed
The Michigan Court of Appeals concluded that a lower court did not abuse its discretion when it admitted economic experts testifying to the quantum of lost profits in this breach of contract action.
Hicks Oil & Butane Co. v. George Garza
The Texas Court of Appeals, Fourth District, reversed a lost profits award to a gasoline dealer because the lost profits evidence was speculative.
HRFH, Inc. v. Pourlos Enterprises, Inc.
The South Carolina Court of Appeals affirmed the exclusion of testimony on damages from the owner of a new business.
Assumption Underlying Lost Profits Analysis Challenged as 'Net Opinion'
The New Jersey Superior Court, Appellate Division, determined that an accountant’s lost profits estimate was not a net opinion where the approach used was adequately supported by reference to accounting and industry standards. Rather, it found that the as ...
Fairway Dodge, Inc. v. Decker Dodge, Inc.
The New Jersey Superior Court, Appellate Division, determined that an accountant’s lost profits estimate was not a net opinion where the approach used was adequately supported by reference to accounting and industry standards. Rather, it found that the as ...
Advanta USA, Inc. v. Farmers Fertilizer Company, Inc.
The Kentucky Court of Appeals determined that the trial court improperly computed the amount of lost profits in this breach of contract action when it awarded profits over a five-year period rather than over 30-day period called for in the contract.