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Washington v. Kellwood Co. (II)

Court strikes down multimillion-dollar lost profits award, finding it was based on expert testimony that was “sheer surmise and conjecture”; using yardstick method, expert claimed upstart company would have achieved 50% of sales of market leader.

Washington v. Kellwood Co. (IV)

Appeals court validates nixing of future lost profits award where expert calculated damages for a startup company based on revenues of market leader; court finds expert failed to use reasonable comparator, making his yardstick analysis legally unsound.

Washington v. Kellwood Co. (I)

Court rejects bright-line reliability test for yardstick analysis, saying expert’s failure to find a “nearly identical” comparator did not render analysis unreliable and inadmissible under Daubert and finding companies were similar in material respects.

Washington v. Kellwood Co. (III)

Court reconsiders earlier order for retrial on lost value damages, finding plaintiffs “had no intention of pursuing a realistic damages award” and lack admissible evidence supporting multimillion-dollar value claims; instead, court awards one dollar.

Flawed yardstick analysis sinks lost profits award

A drawn-out damages case in which a startup compression sportswear company sued the defendant "private label" manufacturer over an abandoned licensing deal promised to make the plaintiff rich but ultimately ended with nominal damages.

2nd Circuit supports nixing of lost profits based on unsuitable benchmark

Readers may remember the damages case that featured an upstart sportswear company whose founder claimed it could have been a major contender in the market “but for” the defendant’s breach.

Court Sets Aside Big Lost Profits Award Based on Bad Yardstick Analysis

Court strikes down multimillion-dollar lost profits award, finding it was based on expert testimony that was “sheer surmise and conjecture”; using yardstick method, expert claimed upstart company would have achieved 50% of sales of market leader.

Court Sets Aside Big Lost Profits Award Based on Bad Yardstick Analysis

Court reconsiders earlier order for retrial on lost value damages, finding plaintiffs “had no intention of pursuing a realistic damages award” and lack admissible evidence supporting multimillion-dollar value claims; instead, court awards one dollar.

The 10 Most Important Valuation Cases of 2016

Because valuation and damages are key components of most lawsuits, there is no shortage of cases addressing issues of interest to appraisers and financial experts. For several years now, BVLaw has provided a list of the cases that stood out during a given ...

Business Valuation Case Law Yearbook, 2017 Edition

February 2017 PDF (250 pages)

BVR (editor)

Business Valuation Resources, LLC

The Business Valuation Case Law Yearbook analyzes the year’s most meaningful valuation-related issues in the major courts including marital disputes, breach of contract actions, damages, dissenting shareholder disputes, estate and gift tax cases, federal taxation, intellectual property cases, bankruptcy litigation, and more. Readers learn how debates over economic damages, goodwill, M&A-related appraisals, discounts, and Daubert challenges played out in court during the past year. Learn more >>

Court discredits yardstick analysis and nixes lost profits award

After more than a decade of litigation, a damages case featuring an upstart sportswear company that portrayed itself in the same league with the leading brand ended with a whimper.

Lost profits claims fail to meet New York’s strict standard

Establishing lost profits under New York law can be difficult.

Business Valuation Case Law Yearbook, 2019 Edition

February 2019 PDF

BVR (editor)

Business Valuation Resources, LLC

The Business Valuation Case Law Yearbook, 2019 Edition is essential for business appraisers and attorneys who want to stay ahead of their peers on the most important legal issues brought up in business valuation-related cases. With in-depth analysis from BVR’s legal team, the lessons learned in this book help appraisers reach better and more defensible valuation conclusions. And, attorneys who retain appraisers as financial experts learn how their experts can help them win (or lose) in court.  Learn more >>

2nd Circuit Affirms Nixing of Award Due to Bad Yardstick Analysis

Appeals court validates nixing of future lost profits award where expert calculated damages for a startup company based on revenues of market leader; court finds expert failed to use reasonable comparator, making his yardstick analysis legally unsound.

Fannon comments on recent ‘yardstick’ case

Last week’s BVWire covered a recent case that involved the use of the yardstick method in the context of lost profits damages.

Court Sets Aside Big Lost Profits Award Based on Bad Yardstick Analysis

Court strikes down multimillion-dollar lost profits award, finding it was based on expert testimony that was “sheer surmise and conjecture”; using yardstick method, expert claimed upstart company would have achieved 50% of sales of market leader.

Court Sets Aside Big Lost Profits Award Based on Bad Yardstick Analysis

Court reconsiders earlier order for retrial on lost value damages, finding plaintiffs “had no intention of pursuing a realistic damages award” and lack admissible evidence supporting multimillion-dollar value claims; instead, court awards one dollar.

BVR Legal and Court Case Yearbook 2016

February 2016 PDF (262 pages)

BVR (editor)

Business Valuation Resources, LLC

The BVR Legal and Court Case Yearbook 2016 is essential for business appraisers and attorneys who want to stay ahead of their peers on the most important legal issues confronting business valuation. With in-depth analysis from BVR’s legal team, the lessons learned in this book help appraisers come to better and more defensible valuation conclusions. Learn more >>

What passes for a reliable yardstick method under Daubert?

How closely does a business have to resemble a comparator to produce a yardstick analysis that meets the Daubert requirements?

In Gatekeeper Role, Court Trains Attention on Expert Methodology, Not Conclusions

In ESOP case pivoting on valuation, court denies parties’ Daubert challenges; court notes “gatekeeping” means focusing “on principles and methodology, not the conclusions that [the experts] generate”; parties’ objections are mostly quarrels with opposing expert’s conclusions, court finds.

Business Valuation Case Law Yearbook 2017 Excerpt

Book Excerpts

The Business Valuation Case Law Yearbook analyzes the year’s most meaningful valuation-related issues in the major courts including marital disputes, breach of contract actions, damages, dissenting shareholder disputes, estate and gift tax cases, federal taxation, intellectual property cases, bankruptcy litigation, and more. Readers learn how debates over economic damages, goodwill, M&A-related appraisals, discounts, and Daubert challenges played out in court during the past year.

10 Best Valuation Cases for 2015

Valuation plays a key role in most civil litigation. Appraisers testify in divorce cases, contract disputes, bankruptcy proceedings, statutory appraisal actions, patent litigation and a host of other suits. All of this activity produces a continuous stream of case law. But some cases are more impactful than others. Here are 10 cases that stood out in 2015.

Plaintiff’s Projections Fail to Meet New York Test for Lost Profits or Lost Business Value

A breach of contract case in which the plaintiff asked for various types of economic damages is noteworthy for the court s extended discussion of what the plaintiff must show under New York law to make a case for lost profits. The court explained that the hurdle was particularly high for a new business or a business trying to break into a new market considering the company s lack of a financial track record. Damages must be ...

Plaintiff’s Projections Fail to Meet New York Test for Lost Profits or Lost Business Value

A breach of contract case in which the plaintiff asked for various types of economic damages is noteworthy for the court s extended discussion of what the plaintiff must show under New York law to make a case for lost profits. The court explained that the hurdle was particularly high for a new business or a business trying to break into a new market considering the company s lack of a financial track record. Damages must be ...

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