Category Archives: Court Rulings

Appraiser Lacks Necessary Valuation Expertise, Dissent Says

July 29, 2016 | Business Plans, Court Rulings, Financial Planning, Valuations

Shaffer v. Visaggio’s, Inc., 2015 Pa. Super. Unpub. LEXIS 2403 (July 29, 2015)  A Pennsylvania dissenting shareholder case raised questions about who is qualified to resolve valuation issues as well as what constitutes competent financial evidence. Valuators may find the dissent’s analysis more compelling than the majority’s opinion because it displays a greater appreciation of  Continue Reading »

Expert’s Application of Asset Approach ‘Defies Common Sense’

July 15, 2016 | Court Rulings, Divorce Litigation, Valuations

In re Marriage of Hartung, 2015 Iowa App. LEXIS 688 (Aug. 5, 2015) Valuation methodology also was at the center of an Iowa divorce case in which the trial court found one method entirely inappropriate for the situation at hand and the other flawed in the way the expert applied it. Notwithstanding the trial court’s  Continue Reading »

Covenants Not to Compete and Personal Goodwill

July 11, 2016 | Business Plans, Court Rulings, Divorce Litigation, Financial Planning, Valuations

A covenant not to compete prevents the seller from competing in the same industry for a specified time period and within a specified geographic range, and on the part of the seller, is similar to title insurance to the buyer of the business. In this sense, it protects the buyer from the loss of value tied to  Continue Reading »

Noncompete-Goodwill Relationship in Spotlight Again

July 1, 2016 | Court Rulings, Divorce Litigation, Valuations

K.T. v. M.T., 2015 Tex. App., LEXIS 8558 (Aug. 13, 2015) Can a solo practice have commercial goodwill, and how do fair market value and the notion of a covenant not to compete (CNTC) fit into the picture? A recent Texas divorce case raised all of these questions and resulted in a predictable outcome. Non-transferable  Continue Reading »

Divorce Valuations: Active versus Passive Appreciation

June 27, 2016 | Court Rulings, Divorce Litigation, Valuations

In divorce cases it’s common for an interest in a closely held business or professional practice to be the marital estate’s most valuable asset. In many states, a valuator may be called upon to distinguish between active appreciation in the business’s value (which is generally subject to division) and passive appreciation (which generally isn’t) when the  Continue Reading »

Damages Expert Stumbles Over Causation

June 17, 2016 | Court Rulings, Valuations

Rowe v. DPI Specialty Foods, 2015 U.S. Dist. LEXIS 110605 (Aug. 19, 2015) Causation confounds even experienced valuators. A common mistake is not to address it at all and risk exclusion under Daubert. But a recent decision presents the opposite situation: an expert who made causation his be-all and end-all and improperly expanded the role  Continue Reading »

Two Divorce Cases Provide Valuable Insight

June 13, 2016 | Court Rulings, Divorce Litigation, Valuations

In this article we will discuss two appellate court cases that teach valuable lessons that apply when valuing a business interest in divorce. Legal precedent related to the use of expert witnesses and business appraisals in divorce tends to vary from state to state. But it’s important to monitor case law across the country for emerging  Continue Reading »

Chancery Gives High Marks to Financial Advisor’s Merger Work

June 3, 2016 | Court Rulings, Valuations

In re Dole Food Co., 2015 Del. Ch. LEXIS 223 (Aug. 27, 2015) (Dole III) In sharp contrast to some of its earlier decisions reprimanding financial advisors for generating outcome-driven valuations, the Delaware Court of Chancery recently extolled the conduct of the financial advisor in a highly contested take-private merger. It noted the firm’s “thorough  Continue Reading »

How to Wrap Up an Estate

May 31, 2016 | Court Rulings, Financial Planning, Tax Planning

Sometimes, estate proceedings continue to be open for years with no end in sight. If you’re an executor or personal representative of an estate, or even an heir, eventually you want closure. There are certain steps that must be taken to close the estate. This article describes the general procedures, but the exact process depends  Continue Reading »

Complex Facts Test Patent Experts’ Apportionment Skills

May 20, 2016 | Court Rulings, Valuations

Finjan, Inc. v. Blue Coat Systems, Inc., 2015 U.S. LEXIS 91528 (July 14, 2015) What apportionment techniques can a damages expert use to ensure the capture of the proceeds from the infringing features but not the noninfringing components? This question dominated a recent Daubert case in which both parties claimed the rival expert’s apportionment rendered  Continue Reading »