Category Archives: Court Rulings

No Place for Asset Appraisal in Trust Dispute, Court Says

November 13, 2015 | Court Rulings, Valuations

Cartwright v. Jackson Capital Partners, Limited Partnership, 2015 Tenn. App. LEXIS 361 (May 21, 2015) Did the appraiser use the wrong method for the case? This question took center stage in a lawsuit featuring the beneficiary of a grantor trust who claimed the trustee had deprived him of all the distributions to which he was  Continue Reading »

NLRB Ruling is Growing Legal Hazard for Some Employers

November 3, 2015 | Court Rulings

Recently there has been a rise in the use of staffing agencies, so the National Labor Relations Board (NLRB) has sought to redefine the relationship between the employees of such an agency and the agency’s client. To do that, the NLRB had to broaden the legal test that makes a worker a “joint employee” of both  Continue Reading »

Lack of Evidence KOs Claim for Goodwill

November 3, 2015 | Court Rulings, Divorce Litigation, Valuations

Reedy-Huffman v. Huffman, 2015 Alas. LEXIS 56 (May 20, 2015) Hire a valuation expert. That’s the message the Alaska appeals court sent in a ruling involving a professional practice caught up in a divorce. The opinion also includes a good summary of the state’s position on goodwill. ‘Evidentiary void’: The husband was a licensed naturopathic  Continue Reading »

Admissibility Does Not Depend on Personal Knowledge of Facts

October 2, 2015 | Court Rulings

American Eagle Waste Industries, LLC v. St. Louis County, 2015 Mo. App. LEXIS 168 (Feb. 24, 2015) The latest dispute in the long-running litigation between several garbage disposal companies and a Missouri county focused on the trial court’s damages findings. The county argued damages were based on inadmissible and unreliable lost profits testimony from the  Continue Reading »

Asset Approach Avoids Double Counting of Future Earnings

September 21, 2015 | Court Rulings

In re Mauer, 2015 Iowa App. LEXIS 172 (Feb. 25, 2015) Double counting remains a preoccupation for divorce courts across all jurisdictions. Recently, the Iowa Court of Appeals affirmed the trial court’s decision to circumvent the problem by endorsing one expert’s use of the asset approach to value the owner spouse’s eye clinics. Using an  Continue Reading »

Beware of Deviating From Objective Standards in Lost Profits Calculation

September 17, 2015 | Court Rulings

Russell v. Allianze Life Insurance Co. of North America, 2015 U.S. Dist. LEXIS 1946 (Jan. 8, 2015)  “Trust, but verify,” is a motto that has stood politicians in good stead. Valuators should take it to heart as well, as illustrated by a Daubert case in which an experienced expert abandoned his standard operating procedure to  Continue Reading »

Court Dismisses Tribe’s Case Seeking Exemption from ACA Penalties

September 7, 2015 | Court Rulings

The United States District Court for the District of Wyoming dismissed a lawsuit seeking to declare Indian tribes exempt from employer penalties under the Affordable Care Act’s (ACA’s) shared responsibility provisions. The tribe argued that Congress didn’t intend to cover tribal employers. Facts of the case The Northern Arapaho Tribe, a federally recognized Indian tribe,  Continue Reading »

Court Decisions Make it Easier to Deduct LLC Losses

August 25, 2015 | Business Plans, Court Rulings

What happens if you’re the owner of a limited liability company (LLC) that generates tax losses, and you don’t spend a lot of time in the activities of the business? The losses might be classified as passive, and your ability to currently deduct them might be severely restricted by the passive activity loss (PAL) rules.  Continue Reading »

Litigation Support: One Right Approach to Wrongful Termination Suits

August 24, 2015 | Accounting Standards, Court Rulings

Employment at will issues are often hashed out in the courtroom, defending against them, especially those involving wrongful termination lawsuits, require significant industry expertise. This, combined with exhaustive research and complete analysis, are key elements to a successful outcome in court. When it comes to wrongful termination cases, there are some specific things that litigation  Continue Reading »

Bad Behavior in a Forced Buyout Triggers Marketability Discount

August 10, 2015 | Court Rulings, Valuations

Wisniewski v. Walsh, 2013 N.J. Super. Unpub. LEXIS 724 (April 2, 2013) Children learn that bad behavior has consequences. An appellate court recently taught a similar lesson to a troublemaking shareholder whose doings forced a buyout. Three siblings each owned a one-third interest in a family business. They had a falling out, and one sued  Continue Reading »