Recent Litigation Support Engagements

Wallace Valuation Advisors has been providing litigation support services to attorneys and their clients in the Northern California area for over 25 years. Our firm’s valuation professionals have testified in State and Federal Court, Arbitration, and Mediation. They are accredited by the American Society of Appraisers, the American Society of Certified Public Accountants, the Institute of Business Appraisers, and the National Association of Certified Valuation Analysts.

In addition, Wallace Valuation Advisors have provided Ligation Support Services for many litigation issues. A listing of those ligation issues is below.

Business Interruption

The Firm was engaged in a construction dispute that resulted in a prolonged, costly business interruption. The Firm assisted in the mediation and testified regarding the faulty business interruption analysis presented by the plaintiff.x

The Firm was engaged by a rice dryer to assist in a claim of improper rice drying practices which resulted in a substantial claim of lost profits. The Firm testified and established the substantial overstatement of the damage claim based on an economic analysis of fixed and variable costs.

The Firm provided testimony on a large claim by an international glass manufacturer for a costly business interruption resulting from delivery of contaminated raw materials by a supplier. The Firm identified methodology problems in the plaintiff’s analysis and provided an alternate analysis of the loss. Back to Top

Breach of Contract

The Firm was engaged by the defendant who was sued for breach of contract and lost profits for failure to convey a substantial parcel to the developer plaintiff. The Firm evaluated the defendant’s development record with comparable projects during the same period. The project would have been developed in the early 1990s (1991-1993) when the California economy was in a severe recession. The Firm provided testimony that the project would have likely failed based upon not only the plaintiff’s own track record with similar projects during this time, but also based upon comparable projects in the area that failed.

The defendant company was sued for lost profits for breach of contract that allegedly resulted in the plaintiff ceasing business and filing bankruptcy. The Firm examined the past financial history of the plaintiff, including the current financial condition and operations of the business.

The plaintiff sued for breach of contract and fraud stemming from a right of first refusal for real property on which the plaintiff operated his business. The Firm was engaged to analyze losses resulting from plaintiff’s inability to purchase the property, and the inability to expand the business as desired.

The Firm was engaged to analyze the loss incurred by a restaurant tenant in a shopping center. The landlord had leased space in the mall to a competing restaurant tenant in breach of the lease agreement with the plaintiff. Testimony was provided at deposition and at trial. Back to Top

Intellectual Property

The Firm was engaged by the defendant who was being sued for fraud and conversion of certain formulas and trade secrets used in the production of a vaccine. The Firm analyzed, among other valuation and lost profit issues, the lost profits of the plaintiff based on a “reasonable royalty” approach utilizing factors set forth in PANDUIT. The Firm provided testimony regarding the faulty analysis by plaintiff’s expert and provided a damage analysis based on a reasonable royalty rate.

The parent company sued the officers of the subsidiary who allegedly diverted assets, corporate know-how, and business opportunity from the subsidiary as they started a new competing business. The Firm reviewed corporate records, contracts, financials, and depositions in determining the lost profits and loss of business goodwill caused by the defendant’s actions. Back to Top

Business Interruption

The Firm was engaged in a construction dispute that resulted in a prolonged, costly business interruption. The Firm assisted in the mediation and testified regarding the faulty business interruption analysis presented by the plaintiff.

The Firm was engaged by a rice dryer to assist in a claim of improper rice drying practices which resulted in a substantial claim of lost profits. The Firm testified and established the substantial overstatement of the damage claim based on an economic analysis of fixed and variable costs.

The Firm provided testimony on a large claim by an international glass manufacturer for a costly business interruption resulting from delivery of contaminated raw materials by a supplier. The Firm identified methodology problems in the plaintiff’s analysis and provided an alternate analysis of the loss. Back to Top

Dissenting Shareholder

The Firm was engaged by a terminated shareholder in a Corporate Code Section 1800 involuntary dissolution action. The Firm valued the company under the “fair value” statute pursuant to Section 2000 of the California Corporation’s Code. Even though the shareholder held a minority position, the Firm was able to look at transactions involving the sale of comparable businesses in determining the prorated value of the shareholder’s interest, without regard to minority discount (consistent with California case law under Section 2000).

The Firm was engaged by a corporate plaintiff in an action against it by a minority shareholder regarding interpretation of a buyout agreement and the term fair value. The Firm testified as to appropriate standards of value (“Fair Value vs. Fair Market Value”), the misinterpretation of the standards by opposing expert, and ultimately, the valuation of the entity.

The Firm was engaged, along with two other appraisers pursuant to Corporate Code Section 1800, to value a major farm equipment supplier. The Firm conducted a liquidation analysis pursuant to Section 2000 and cooperated with the other experts in rendering a joint report. Back to Top

Personal Injury/Wrongful Death

The plaintiff sued for lost wages resulting from an injury that occurred on the job site of the defendant contractor. The Firm testified as to the plaintiff’s lost earnings. Included in the analysis was the plaintiff’s anticipated future wages as a metal worker mitigated by anticipated earnings from certain job alternatives that the plaintiff could have chosen after completing his medical rehabilitation.

The plaintiff’s husband was employed as a long haul truck mechanic and was killed on the job. The analysis performed by the Firm included a calculation of the future earnings and retirement benefits that would have been earned. The calculation considered existing retirement benefits and the husband’s projected consumption of the earnings as mitigating items.

The Firm was retained by a State agency to evaluate the lost wages claim of the plaintiff who was disabled and unable to work as a result of a sexual harassment claim against the State. Back to Top

Construction Defect

The Firm was engaged in a construction delay and business interruption case involving delays in the construction of hospital emergency surgery rooms. The Firm coordinated its analysis with construction experts in analyzing both the construction costs and the direct and indirect expenses incurred by the hospital as a result of the delay. Testimony was provided at an arbitration hearing.

The Firm was engaged in an action against a municipality resulting from an alleged improper demolition of a structure by the municipality. The Firm testified to the loss in value as well as other damages incurred stemming from the demolition.

The Firm was engaged to analyze the business interruption loss caused by construction defects requiring the physician/tenant to abandon his office wherein he performed cosmetic surgery. Testimony was provided at arbitration.

The Firm was engaged to review incremental construction costs and other damages associated with a termination of a contractor during a construction project. The Firm coordinated its testimony with other experts at arbitration. Back to Top