Category Archives: Court Rulings

Court Says Daubert’s ‘Gatekeeper’ Role Favors Inclusion, Not Exclusion

May 6, 2019 | Court Rulings, Valuations

Ferraro v. Convercent, Inc. This Daubert case illustrates how courts may interpret the role of “gatekeeper” differently. The dispute featured a company that provided software-based services. The defendants claimed the plaintiff’s expert was unqualified because he lacked the necessary experience valuing that type of company, but the court found the law did not require this  Continue Reading »

$6 million award in lawsuit exposes rift in prominent Maine business family

April 8, 2019 | Court Rulings, Valuations

Tucker Cianchette has won a nearly $6 million verdict against his father over the failed buyout of a Yarmouth car dealership, exposing a rift in one of Maine’s most prominent business families. Cianchette sued his father and stepmother, Eric and Peggy Cianchette, on a range of charges after the deal went sour. A Cumberland County  Continue Reading »

Courts Are Alert to Valuations Unmoored From the Facts

March 25, 2019 | Court Rulings, Valuations

Cristofano v. Chahal Perhaps experts feel pressure from the hiring attorney or the client, perhaps they are unable to access key documents or information, or perhaps they simply lack valuation and litigation experience. Whatever the reason, case law provides too many examples in which valuation and damages experts have proffered opinions that were plainly counterfactual  Continue Reading »

Balance Your Right to Monitor Communications with Employees’ Privacy Rights

March 18, 2019 | Court Rulings

Have you considered monitoring your employees’ communications at work? It’s a delicate balance to create a policy to monitor employees activities and protect your company without violating employees’ legal privacy protections. But you may have legitimate reasons for doing so, especially those emails generated on company servers. Reasons to Monitor Emails Why would your company  Continue Reading »

In Controversial Move, Tax Court Tackles ‘Double Inclusion’ Problem 

March 11, 2019 | Court Rulings, Valuations

Estate of Powell v. Commissioner  Given the unfavorable optics of a recent case, the Tax Court’s finding that the value of assets transferred from the decedent to a family limited partnership was includible in the value of the decedent’s gross estate is not surprising. What makes the decision noteworthy is that a majority of judges,  Continue Reading »

Improper Use of Active/Passive Framework Skewers Valuation

February 25, 2019 | Court Rulings, Valuations

Bair v. Bair  When confronted with quantifying the appreciation of non-marital property, it is common for valuators first to classify the change in value as “active” or “passive” and then do the valuation. A Florida case shows that, when applied prematurely, this active/passive analysis may result in an improper valuation.   The parties fought over the valuation  Continue Reading »

Eleventh Circuit Affirms Tax Court’s Valuation of Trust’s Interest in LLC

February 11, 2019 | Court Rulings, Valuations

Estate of Koons v. Commissioner (Koons II)  The 11th Circuit Court of Appeals upheld a 2013 Tax Court ruling in an estate and generation-skipping tax case that centered on the fair market value of a revocable trust’s interest in an LLC. The crux of the valuation was the marketability discount. Valuators can benefit from the  Continue Reading »

Defective Lost Profits Analysis Triggers Take-Nothing Ruling

January 28, 2019 | Court Rulings

Horizon Health Corp. v. Acadia Healthcare Co The Texas Supreme Court issued an important opinion on future lost profits that illustrates how a damages analysis that has some support in the evidence may still fail to meet the legal standard of “reasonable certainty.” The court’s decision highlights the importance of asking and answering the right  Continue Reading »

CUT Method Prevails in Amazon’s Transfer Pricing War with IRS

January 14, 2019 | Court Rulings, Valuations

Amazon.com, Inc. v. Commissioner Amazon scored a win against the Internal Revenue Service in a transfer pricing case. The dispute was over the calculation of buy-in payments to compensate Amazon US for the transfer of a group of intangibles to the company’s European subsidiary and the cost-sharing payments related to ongoing development of intangibles. The  Continue Reading »

Gender-Based Pay Discrimination Allegations: Is Your Business Vulnerable?

January 7, 2019 | Court Rulings

  Do you know what constitutes pay discrimination in the eyes of the courts and regulators? As equal pay for men and women has become a hot-button issue in the business world due to the #MeToo movement and recent surveys documenting widespread pay disparity, you need to know the basics. There have been laws and  Continue Reading »