Category Archives: Court Rulings

Plaintiff Fails to Convince the Court That Physical Loss or Physical Damage Has Occurred; Virus Clause Applies and Defendant’s Motion to Dismiss Is Granted

December 13, 2021 | Court Rulings, Valuations

Family Tacos, LLC v. Auto Owners Ins. Co. Summary In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court grants a motion to dismiss the plaintiff’s claims. Plaintiff operates two restaurants in Ohio, which has incurred losses due to the pandemic. Because the policy, as a matter of law, does not  Continue Reading »

Court Grants Insurance Company’s Motion to Dismiss Plaintiff’s Complaint That It Suffered Covered Loss of Income Due to COVID-19 Restrictions

November 29, 2021 | Court Rulings

Equity Planning Corp. v. Westfield Ins. Co. Case Digest  COVID-19-related damages cases are making their way through state and federal courts. Plaintiffs typically are businesses that have suffered economic losses because of various mandatory shutdowns. They file claims with their insurance agency, which frequently denies coverage for business interruption losses. However, more often than not,  Continue Reading »

The District Court Refuses to Throw Out Experts Under Daubert Motions, Citing Differences in Admissibility and Scrutiny Under Cross-Examination

November 16, 2021 | Court Rulings

Innovation Ventures, L.L.C. v. Custom Nutrition Labs., L.L.C. This case involves a consideration of motions by both the plaintiff and the defendant to exclude the testimony of the other party’s expert witness based on Daubert and the Federal Rules of Evidence. Plaintiff’s expert testified on how to calculate lost profits based on the plaintiff’s market  Continue Reading »

Court Rejects Creditor’s Objection to Discharge Based on Debtor’s Alleged Concealment of Client List from Accounting Business Client

October 26, 2021 | Court Rulings

Case digest The case implicates section 727 of the U.S. Bankruptcy Code, which concerns a Chapter 7 debtor’s request for discharge. Objections to discharge are challenging to prove because the denial of discharge is the “death penalty” in bankruptcy. The objector has the burden of proving the debtor failed to disclose property, including a customer  Continue Reading »

In Buyout Dispute, ‘Downward Bias’ Sinks Expert’s Fair Value Determination

October 19, 2021 | Court Rulings

Ryan Trust v. Ryan  In a bitter buyout dispute involving a thriving private family business and featuring two veteran appraisers, the Nebraska Supreme Court recently affirmed the district court’s decision to unreservedly credit the valuation testimony of the expert for the late majority shareholder. In contrast, the district court found the company’s expert’s valuations under  Continue Reading »

Court Adopts its Own Methodology in Determining Fair Value in a Shareholder Dissent Suit

October 5, 2021 | Court Rulings

Island Light & Power Co. v. Sara Golvinveaux McGinnes Block Island Power Co. (BIPCO), founded in1925, was purchased in the 1980s by five individuals. By 2015, there were three shareholders: two doctors and the respondent, in this case, the Sara Golvinveaux McGinnes 2011 Trust. On Nov.11, 2016, the two doctors sold their shares in BIPCO  Continue Reading »

Connecticut Supreme Court Clarifies Double-Counting Rule

September 21, 2021 | Court Rulings, Valuations

Oudheusden v. Oudheusden The Connecticut Supreme Court clarified this jurisdiction’s approach to double counting (or double-dipping in a recent decision). The court acknowledged that it had never been asked to determine whether the rule against double counting applied where the case involved the distribution of the value of the owner’s business and the consideration of  Continue Reading »

Indiana Supreme Court Rejects Blanket Rule Against Discounts in Compulsory, Closed-Market Share Buyback

September 8, 2021 | Court Rulings, Valuations

Hartman v. BigInch Fabricators & Construction Holding Co., Inc In 2020, the Indiana Court of Appeals overturned the trial court and found for the selling shareholder when it decided discounts were inappropriate in any compulsory, closed-market sale. The court did not think it mattered that a shareholder agreement specified a buyout based on specific valuation  Continue Reading »

Tax Court Allows for ‘Slight’ Discount for Lack of Control for Majority Interests in Real Estate Holding

August 24, 2021 | Court Rulings

Companies Estate of Warne v. Commissioner In a gift and estate tax dispute, the estate and Internal Revenue Service agreed to apply discounts for lack of control and marketability to the majority interests in several real estate holding companies. The U.S. Tax Court noted that, in prior decisions, the court found no discount for lack  Continue Reading »

Court Declines Motion to Dismiss Claim of Coverage for Loss of Income but dismisses the Claim of Coverage Under the Civil Authority Provision

July 26, 2021 | Court Rulings, Uncategorized, Valuations

Derek Scott Williams PLLC v. Cincinnati Ins. Co. Summary In this business interruption case resulting from mandatory shutdowns to control COVID-19, the court declined to grant a motion to dismiss the claim of the plaintiff as to coverage for loss of business income but does dismiss the claim of coverage under the civil authority provision  Continue Reading »