Category Archives: Court Rulings

Bankruptcy Court Sides With Trustee—Disallows (Fraudulent) Transfers

September 28, 2022 | Court Rulings

Stone v. Citizens Equity First Credit Union The trustee for the International Supply Co. (ISCO) asked the bankruptcy court to avoid and recover prepetition fraudulent transfers made to Citizens Equity First Credit Union (CEFCU). The bankruptcy court determined that ISCO was insolvent when the transfers were made, not to satisfy its debts but rather for  Continue Reading »

In Appraisal Action, Court Determines Fair Value Using Deal Price Minus Synergies and Adjusting for Increase in Value from Signing to Closing of Merger

September 13, 2022 | Court Rulings

In re Appraisal of Regal Entertainment Group Summary. In a merger action involving a publicly traded company, dissenting shareholders sued for a higher value than the deal consideration. Under the applicable appraisal jurisprudence, the court determined fair value using the deal price minus synergies and adjusting for the change in the value of the target  Continue Reading »

Louisiana Court of Appeals Disallows a Discount for Trapped-In Capital Gains Taxes and a Reduction in Receivables for Collectability

August 29, 2022 | Court Rulings

ShopRite, Inc. v. Gardiner The Court of Appeals was asked to review the trial court’s determinations of fair value for the shares of stock of a withdrawing shareholder. Shawne Gardiner was a withdrawing shareholder in ShopRite Inc. (3.8% interest) and Tobacco Plus Inc. (3.95% interest). Gardiner sent a formal notice of withdrawal under the Louisiana  Continue Reading »

5th Circuit Court of Appeals Upholds Tax Court Finding That Taxpayer Gifted a Percentage of Partnership Interests and Not a Fixed Amount

August 10, 2022 | Court Rulings, Tax Planning

Nelson v Commr., 2021 “Mary P. Nelson and James C. Nelson appeal the Tax Court’s denial of their petition for a redetermination of a deficiency of gift tax issued by the commissioner of Internal Revenue for the tax years 2008 and 2009. For the following reasons, we AFFIRM.” Facts. Mary Pat and James Nelson sought  Continue Reading »

A Louisiana Appeals Court Decides That the Trial Court Abused Its Discretion in Choosing the Method of Determining Damages

July 28, 2022 | Court Rulings

Dettenhaim Farms, Inc. v. Greenpoint Ag, LLC This decision of the appeal court of Louisiana took up the alleged damages of the soybean crop and the trial court’s findings on the matter. The appeal court found that the trial court abused its discretion when it chose an expert’s methodology for determining damages, “as another methodology  Continue Reading »

Federal Appellate Court, 4th District, Affirms District Court as to Violation of ERISA but Allows Offset of Debt Forgiveness in Determining Damages

July 15, 2022 | Court Rulings, Debt & Financing

Walsh v. Vinoskey This case was an appeal from the well-publicized district court case regarding the violation of ERISA regarding the sale of stock by the company owner to a company ESOP. The appellate court affirmed that the district court did not err, finding that the owner had extensive knowledge of the company and prior  Continue Reading »

One-Third Partner in Real Estate Sued to Have the Partnership Dissolved Then Asked to Vacate His Dissolution Assertion, Which the Appellate Court Denied

June 30, 2022 | Court Rulings

Guttman v Guttman Bruce Guttman (Bruce), Phillip Guttman (Phillip), and Judith Douglas (Judith) are siblings and co-equal general partners of the Guttman Family Limited Partnership (the partnership), which owns real estate in Los Angeles. Bruce sued to dissolve the partnership, and Phillip and Judith initiated a statutory procedure to buy Bruce out. Believing the appraisals  Continue Reading »

In a Divorce Case, the California Court of Appeal Rejects Discount for Taxes Not Immediate and Specific But Allows a DLOM

June 16, 2022 | Court Rulings, Divorce Litigation

Harvey v. Harvey This was an appeal and across-appeal in a California divorce case. Michael and Cynthia Harvey were married in 1988. Three years later, Michael formed Enviro Tech ChemicalServices Inc. (Enviro Tech). By 2010, Harvey’s jointly owned 825 shares of EnviroTech, representing nearly 70% of the outstanding stock. In 2011, they entered into a  Continue Reading »

Minnesota Appellate Court Upholds Prejudicial Conduct to Oppressed Shareholder and Affirms Disallowance of Marketability Discount

June 2, 2022 | Court Rulings

Gerring Props. v. Gerring The appellate court of Minnesota considered appeals and cross-appeals in a series of shareholders’ disputes. The appellants are Gerring Properties Inc. (GP) and Quality CarWash Operations Ltd. (QCW). QCW operated a family-owned car-wash facility in Minnesota, leasing the land and equipment from GP. The Gerring brothers and some children now “accuse  Continue Reading »

California Appellate Court Affirms Exclusion of Testimony From Witness as Being Based on Inadmissible Hearsay Evidence

May 19, 2022 | Court Rulings

HMH Enters. v. TAG Enters The plaintiffs contended the trial court erred in granting two of the defendant’s motions to exclude evidence of the plaintiff’s damages. The appellate court affirmed. The lawsuit concerned the contemplated sale of a laundromat business. The defendant, TAG (Landlord), owns the Cudahy Shopping Center. Minwasa, a tenant of TAG’s, sought  Continue Reading »