Every so often a case comes along that reads less like a business dispute and more like a cautionary tale about the perils arising out of unwritten deals among friends. As we’ve written about before, these cases can be brutal to defend, particularly where the pleadings just robust enough to survive a motion to
While there is tremendous diversity from state to state when it comes to statutory and judge-made law in business divorce cases, business valuation principles are—with a few notable exceptions—far more homogenous. So it makes sense to occasionally venture beyond New York’s borders to see how other courts and experts are addressing the business valuation questions that New York-based business divorces often encounter.
This week’s post looks at several recent decisions across the country concerning valuation principles and discounts. While each case features different applicable rules and agreements, our New York readers would be wise to note the persuasive power of these cases, especially given the sometimes-thin body of New York caselaw on business valuation issues.
Continue Reading Cross-Country Valuation Check-Up: Discounts, Buy-Sell Agreements, and Ambiguity PotholesThis week’s New York Business Divorce examines the “diversity trap” in business divorce cases involving LLCs brought in federal court, highlighting a recent decision by SDNY District Judge Edgardo Ramos dismissing for lack of jurisdiction a suit between former law firm partners.
Continue Reading Beware Diversity Trap in Federal Court Business Divorce Cases Involving LLCs