A sampling of recent case digests added to BVLaw
These are a sampling of new cases digested for BVLaw. These are cases where calculations of business value were essential to appellate level decision.
Keil v. Keil, 2011 WL 2150009 (N.Y.A.D. 3 Dept.)(June 2, 2011)
Appellate court finds “key man” discount duplicative when trial court already adopted a value that accounted for the business’s dependency on its sole owner.
Experts: unnamed
Judge: Spain
State/Jurisdiction: New York
Court: Appellate
Type of case: marital dissolution
Kapadia v. Kapadia, 2011WL 1849407 (Ohio App. 8 Dist.)(May 12, 2011)
Trial court did not err by accepting expert value that compared wife’s interest in chain of local sandwich stores to those found in mall and airport food courts; and by rejecting expert who valued it based on national franchise comparables.
Experts: Robert Turner (wife); Robert Greenwald (husband)
Judge: Gallagher
State/Jurisdiction: Ohio
Court: Appellate
Type of case: marital dissolution
K.B.R. v. E.P.R. 2011 WL 2183858 (Mass. App. Ct.)(unpub.)(June 7, 2011)
Trial court accepts value of lending corporation based on “weighted average collectability” of outstanding loans, adjusted downward for economic uncertainties and default status of loans.
Experts: unnamed
Judge: Fecteau
State/Jurisdiction: Mass.
Court: Appellate
Type of case: marital dissolution
Mondis Technology, Ltd. v. LG Electronics, Inc., 2011 WL 2417367 (E.D. Tex.)(June 14, 2011)
Federal district court permits patent damages expert to base running royalty calculations on market value of accused products, when “economic justification” supported application of entire market value rule.
Experts: Stephen Magee
Judge: Everingham
State/Jurisdiction: federal/Texas
Court: U.S. District Court
Type of case: IP
Spectralytics, Inc. v. Cordis Corporation, 2011 WL __________ (Fed. Cir.)(June 13, 2011)
Federal Circuit court affirms 5% royalty rate damages for infringement of patented medical device, based on expert evidence that showed a 20% rate would have been reasonable in light of economic and competitive circumstances.
Experts: Julie Davis
Judge: Newman
State/Jurisdiction: federal
Court: U.S. Court of Appeals for the Federal Circuit
Type of case: IP
Nelson v. Walnut Investment Partners, LP, 2011 WL 2711318 (S.D. Ohio)(July 13, 2011)
Bankruptcy court denies Daubert motion and grants summary judgment based largely on expert insolvency analysis, despite “professional” disagreement on data used to calculate small stock premium, cost of debt, and company-specific risk premium.
Experts: Robert Ferguson (plaintiff); Jeffrey Risius (defendants)
Judge: Spiegel
State/Jurisdiction: federal/Ohio
Court: U.S. district court
Type of case: bankruptcy
Dawkins v. Hickman Family Corp., 2011 WL 2436537 (N.D. Miss.)(June 13, 2011)
Determination of fair value under dissenting shareholder statute in Mississippi includes dollar-for-dollar discount for built-in capital gains tax liability in case of private asset-holding partnership.
Experts: James Koerber
Judge: Aycock
State/Jurisdiction: federal/Mississippi
Court: U.S. District Court
Type of case: dissenting s/h
Estate of Cohen v. Booth Computers, 2011 WL 2694288 (N.J. Super)(July 13, 2011)
Appellate court rules that a buy-sell provision at book value is not unconscionable and confirms buy-out of deceased partner, despite leaving remaining partner with a fair market value nearly 60 times greater than buy-out price.
Experts: Dennis Kremer (plaintiff); Sam Rosenfarb (defendant)
Judge: Carchman
State/Jurisdiction: New Jersey
Court: appellate court
Type of case: Buy-sell agreement
Energy Transportation Group, Inc. v. Sonic Innovations, Inc., 2011 WL 2222066 (D. Del.)(June 7, 2011)
Federal district court affirms damages award for patent infringement despite jury “splitting the difference” between the parties’ experts’ reasonable royalty analyses.
Experts: Terry Musika (plaintiff); Putnam (defendant)
Judge: Sleet
State/Jurisdiction: federal/Delaware
Court: U.S. district court
Type of case: IP
Harris v. Koenig, 2011 WL 2531257 (D. D.C.)(June 27, 2011)
Court upholds the alternative investment method used by ESOP expert to support claims that plan trustee breached its fiduciary duty by imprudently investing in stocks it knew to be artificially inflated by accounting improprieties.
Experts: Saul Solomon
Judge: Kessler
State/Jurisdiction: federal / District of Columbia
Court: U.S. District Court
Type of case: ESOP