Category Archives: Court Rulings

Nonowner Spouse Obtains Discovery of Valuation-Related Info from Owner Spouse’s Medical Practice

April 6, 2020 | Court Rulings, Divorce Litigation, Valuations

Hall v. Hall A Florida divorce case prompted an important discovery ruling from the appellate court as to a nonowner spouse’s right to access documents and information regarding the owner spouse’s interest in a large medical practice. The wife was one of 75 owners in a large medical practice that had 200 physicians. After she  Continue Reading »

Court Says Corrected DCF Still Supports Original Fair Value Determination

March 23, 2020 | Court Rulings, Valuations

In re Appraisal of Jarden Corp. The Delaware Court of Chancery’s recent decision to use the unaffected market price as fair value prompted the petitioners to file a motion for reargument. In its original opinion, the court, as part of its comprehensive analysis, reviewed the opposing experts’ discounted cash flow calculations and, finding neither entirely  Continue Reading »

Unadjusted Deal Price Best Represents Fair Value, Court of Chancery Says

March 9, 2020 | Court Rulings, Valuations

In re Appraisal of Columbia Pipeline Grp., Inc. In a statutory appraisal case featuring a publicly traded company, the Court of Chancery, after an exhaustive evaluation of the sale process, found the deal price was the best evidence of fair value. It said neither side met its burden of proof to justify a downward or  Continue Reading »

Deal Price Prevails in Yet Another Delaware Statutory Appraisal Ruling

February 10, 2020 | Court Rulings, Valuations

Stillwater Mining Co. Nine days after his ruling in Columbia Pipeline, Vice Chancellor Laster again found the deal price was the most reliable indicator of fair value in a statutory appraisal case involving a publicly traded mining company. The Court of Chancery’s analysis in Columbia Pipeline served as a template for this case, but the  Continue Reading »

Court Finds Plaintiff Fails to Show ESOP Transaction Caused Injury

January 27, 2020 | Court Rulings, Valuations

Lee v. Argent Trust Co. The private plaintiff alleged a number of violations by the ESOP trustee and other defendants. The plaintiff maintained the trustee participated in a prohibited transaction and breached its fiduciary duties. By the plaintiff’s calculation, the ESOP overpaid for company stock. The district court dismissed the suit and, in so doing,  Continue Reading »

Novel Issue of Law Raised in ESOP Case That Pits Trustee Against Appraiser

January 13, 2020 | Court Rulings, Valuations

Remy v. Lubbock Nat’l Bank A fairly routine ESOP case that is being litigated in the 4th Circuit has raised a novel legal issue in this jurisdiction as to the financial liability of co-fiduciaries and nonfiduciaries, including the ESOP appraiser. The plaintiffs in the main case sued the defendant, Lubbock National Bank (Lubbock), over its  Continue Reading »

Parties Fight Over Notes-Containing Expert Report: Draft or Final Version?

December 30, 2019 | Court Rulings

County of Maricopa v. Office Depot Inc. Several sessions at the recent AICPA conference in Las Vegas highlighted the importance of expert discovery in litigation and noted that draft reports continue to be a hot-button issue. A recent contract dispute, litigated in federal court, in which the defendant tried to exclude the opposing expert for  Continue Reading »

Tax Court’s Amazon Valuation Ruling Stands Up to 9th Circuit Scrutiny

December 16, 2019 | Court Rulings, Tax Planning, Valuations

Amazon.com, Inc. v. Commissioner The 9th Circuit recently affirmed the U.S. Tax Court’s 2017 decision in favor of Amazon in this key transfer pricing case, finding the governing regulations limited the definition of “intangible” to independently transferable assets. This interpretation supported the Tax Court’s favoring the comparable uncontrolled transaction (CUT) method over the discounted cash  Continue Reading »

In Gatekeeper Role, Court Trains Attention on Expert Methodology, Not Conclusions

December 2, 2019 | Court Rulings, Valuations

Acosta v. Wilmington Trust In this ESOP litigation, both parties tried to exclude the opposing side’s valuation expert testimony under Rule 702 and Daubert. The court noted that, at this stage in the proceedings, its focus was on whether the experts applied reliable principles and methods, not on the experts’ conclusions. This case serves as  Continue Reading »

Court Explains Treatment of Undistributed Earnings in Valuing Law Firm Partnership Interest

November 18, 2019 | Court Rulings, Divorce Litigation, Valuations

Burchfield v. Burchfield Among a host of issues, this Virginia divorce case, which included a prominent Washington, D.C., lawyer and his estranged wife, raised an important valuation question related to the husband’s partnership interest in the firm: Whether undistributed earnings were includible in the marital property, as the wife’s expert claimed, or whether they were  Continue Reading »