New case digests added to BVLaw in the last weeks
The following is a sampling of court decisions in which determination of the value of a business was essential to the result. Many of the leading financial experts and business appraisers were involved as consultants or expert witnesses in these matters. BVLaw digests all cases where valuation methodologies or competing approaches are adjudicated.
Gearreald v. Just Care Inc., 2012 Del. Ch. LEXIS 91 (April 30, 2012)
Experts: Frank Torchio (petitioners); J.T. Atkins (respondents)
Judge: Parsons
State/Jurisdiction: Delaware
Court: Court of Chancery
Type of case: statutory appraisal
SIC code: 9223 Correctional Institutions
Grow v. Grow, 2012 Ohio App. LEXIS 1468 (April 16, 2012)
When the original valuation date preceded the 2008-2009 economic crisis, trial court erred by failing to consider its impact on the value of the business prior to trial.
Experts: Doug Michel (husband); Hochwalt (wife)
Judge: Hendrickson
State/Jurisdiction: Ohio
Court: Court of Appeals
Type of case: marital dissolution
SIC code: 1542 General Contractors-Nonresidential Buildings, Other than Industrial Buildings and Warehouses
Iacampo v. Oliver-Iacampo, 2012 Ohio. App. LEXIS 1574 (April 23, 2012)
Appellate court affirms expert testimony regarding factors that contributed to active vs. passive appreciation of the marital business; even though his report didn’t make specific conclusions, it did apply a 10% discount for lack of control, which, while not determinative, was “necessarily” intertwined with the issue.
Experts: Robert Turner (wife)
Judge: Trapp
State/Jurisdiction: Ohio
Court: Court of Appeals
Type of case: marital dissolution
SIC code: 2752 Commercial Printing, Lithographic
Brasher v. Broadwind Energy, Inc., 2012 U.S. Dist. App. LEXIS 55194 (April 19, 2012)
Federal district court denies motion to dismiss securities claims, finding sufficient allegations that defendant company and CEO delayed timing of impairment charges to overstate value prior to a public offering.
Experts: unnamed
Judge: Zagel
State/Jurisdiction: Federal/ Illinois
Court: U.S. District Court
Type of case: Securities
SIC code: 3433 Heating Equipment, Except Electric and Warm Air Furnaces
Stuckey v. Online Resources Corp., 2012 U.S. Dist. App. LEXIS 68928 (May 17, 2012)
Court denies Daubert motion against plaintiffs’ expert, finding he applied the correct formula for calculating breach of contract damages for failing to register stock under Delaware law.
Experts: Espen Robak (plaintiff)
Judge: Marbley
State/Jurisdiction: Federal/ Ohio
Court: U.S. district court
Type of case: securities
SIC code: 7371 Computer Programming Services
Icare-EMS, Inc. v. Rural Metro Corp., 2012 U.S. Dist. LEXIS 85336 (June 20, 2012)
Court admits expert’s calculations of lost profits under the cost method, finding the method not “optimal” but nevertheless reliable under the Daubert standard given the start-up nature of the business.
Experts: Nicole Thorne Jenkins
Judge: Collier
State/Jurisdiction: Federal/Tennessee
Court: U.S. district court
Type of case: lost profits
SIC code: 4789 Transportation Services, Not Elsewhere Classified