July 13, 2015

Yvette Austin Smith and Brattle Team Prevail in DE Chancery Court Valuation Ruling

Brattle principal Yvette Austin Smith recently provided successful valuation testimony in a combined breach of fiduciary duty and appraisal matter before the Delaware Court of Chancery in the case Owen vs. Lynn Cannon et al.

Ms. Austin Smith submitted an expert report and testified on behalf of the plaintiff. In the opinion issued on June 17, 2015, the Court accepted her testimony, which reaffirmed the Court’s view on tax-affecting S-corporations in the context of valuation. Chancellor Bouchard found that the fair value of the plaintiff’s shares was almost double that of the value proffered by the defendant’s expert and just below 80% of the value as determined by Ms. Austin Smith.

In its opinion, the Court identified two primary factors driving the difference in value between the two experts: 1) the correct tax rate to apply to an S-corporation and 2) the appropriate set of management projections. Ms. Austin Smith prevailed on both factors.

Brattle principal Peter Fox-Penner submitted a second expert report and testified as an energy industry expert. The Brattle team was supported by principal Torben Voetmann and senior associate Nicholas Powers.

Associated Experts
Austin smith
Principal
Ms. Austin Smith specializes in M&A and bankruptcy disputes with subject matter expertise in valuation and credit and solvency analysis. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Voetmann 055
Principal
+1.415.217.1007
+1.415.235.5709
Dr. Voetmann focuses on cases that involve complex economic and financial issues. He has worked with clients and experts on securities cases and valuation disputes related to capital markets and financial institutions. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Fox penner 131
Academic Advisor
+1.202.955.5050
Dr. Fox-Penner specializes in economic, regulatory, and strategic issues in network industries. His practice centers on energy and environmental policies and electric regulation, planning, and competition issues. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
0014 1
Senior Associate
+1.202.955.5050
Dr. Powers has expertise in industrial organization and energy economics. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4