When it comes to methodology, stick to the tried and true. This is the takeaway from a recent intellectual property case involving a patent related to a dual-flush valve mechanism in toilets. An experienced appraiser tinkered with the royalty base and royalty rate formulas—and saw his damages calculation go down the drain. Per-unit royalty The  Continue Reading »

Hanusin v. Hanusin, 2013 Ill. App. Unpub. LEXIS 2618 (Nov. 20, 2013) What’s more relevant and reliable in terms of valuing an interest in a closely held corporation: a 2004 stock purchase agreement or a 2012 settlement four owners of the company made with a fifth partner to conclude litigation? This was a central question  Continue Reading »

In re Civic Partners Sioux City, LLC, 2013 Bankr. LEXIS 4225 (Oct. 7, 2013) After declaring Chapter 11 bankruptcy, the debtor, a developer, asked the Bankruptcy Court to confirm the latest version of its reorganization plan in a “cram down” proceeding. Two key creditors objected, arguing that the plan rested on an improperly low valuation  Continue Reading »

Brave v. Brave, 2013 Ark. App. LEXIS 570 (Oct. 2, 2013) For over 25 years, Arkansas courts recognized a tight “professional license goodwill” exception in divorce cases. It applied primarily in cases involving professional partnerships such as medical and dental offices and treated the professional spouse’s personal goodwill as his or her separate property for  Continue Reading »

Estate of Tanenblatt v. Commissioner, 2013 Tax Ct. Memo LEXIS 273 (Nov. 18, 2013) In challenging the Internal Revenue Service’s deficiency notice related to estate taxes for the decedent’s interest in a limited liability company, the taxpayer pulled out all the stops. He disavowed the initial appraisal that was the basis for his estate tax  Continue Reading »

In re Tronox Incorporated, 2013 Bankr. LEXIS 5232 (Dec. 12, 2013) Valuation experts of various stripes took center stage in a recent fraudulent conveyance suit regarding a parent company’s decision to spin off its chemical manufacturing business from its highly profitable oil and gas exploration and production business. The transaction left the former with billions  Continue Reading »

Vega v. Fulcrum Energy, LLC, 2013 Tex. App. LEXIS 12323 (Oct. 3, 2013) After a partnership dispute arose, the dismissed stakeholder sued, claiming the defendants breached an agreement that required them to buy back his interest, and retained an expert to value the business. Pretrial, the defendants unsuccessfully challenged the expert’s valuation for failing to  Continue Reading »

Sparks v. Sparks, 2013 Mo. App. LEXIS 1421 (Nov. 26, 2013) As the husband pursued a divorce, he thought it necessary to sell part of his animal hospital to comply with any upcoming equalization payment order and procured a valuation. The trial court stayed the sale during the litigation but credited the valuation even though  Continue Reading »

In re Residential Capital, LLC, 2013 Bankr. LEXIS 4844 (Nov. 15, 2013) A recent ruling in the multifaceted Chapter 11 bankruptcy litigation of Residential Capital (ResCap) contains a noteworthy analysis of the alleged diminution in value of the collateral of junior secured noteholders (JSNs). Bankruptcy experts have observed that only a few decisions have tried  Continue Reading »

Starling v. Starling, 2013 Va. App. LEXIS 248 (Sept. 10, 2013) (slip op.) Because the trial court found neither spouse’s expert offered a convincing valuation for a family business, it opted to adopt the liquidation value the company’s CPA proposed. On appeal, the husband contested both the trial court’s classification of the business as hybrid  Continue Reading »