Fair Market Value

News & Analysis as of

Fannie Mae, Freddie Mac Clarify Rural Property Appraisal Requirements

On April 1, Freddie Mac issued Bulletin 2014-05, and on March 25, Fannie Mae issued Lender Letter LL-2014-02, in response to directives from the FHFA to clarify certain requirements related to appraisals for properties...more

An Exception to the Fair Market Value Rule: Use the Foreclosure Sales Price for a Deficiency after a Third Party Purchaser

If the value of a foreclosed property is less than the loan amount, lenders may seek a deficiency judgment from borrowers and guarantors after the foreclosure sale. In most cases, the lender is the sole bidder at the sale and...more

Lender’s Title Insurance: When Should Courts Measure the Fair Market Value of Property Affected by a Title Defect?*

Title insurance is designed to pay for damages caused by any defects to title that the title company should have discovered but did not. Lender’s title insurance protects lenders who lose money due to a title defect, which...more

Surprising Ruling By Georgia Court Of Appeals May Allow For Pursuit Of Guarantors Without First Confirming Foreclosure Sale In...

As any lender who’s had a loan secured by real property collateral in Georgia knows, in order to pursue a deficiency balance following a non-judicial foreclosure of its collateral, the foreclosure sale has to be “confirmed”...more

Annual ISO and ESPP Information and Reporting Requirements

Annual Information Statements and IRS Returns - Requirement to Report - For any exercise of an incentive stock option (ISO) or transfer of a share previously purchased pursuant to a tax-qualified employee stock...more

Policemen’s Annuity and Benefit Fund of Chicago, Illinois v. DV Realty Advisors LLC, C.A. No. 7204-VCN (Nov. 27, 2013) (Noble,...

In this letter opinion, the Court of Chancery (1) ruled that the removal of a general partner did not convert the general partner’s interest into a limited partnership interest, and (2) valued the removed general partner’s...more

Prospective Waivers of the Fair Market Value Defense Held Invalid

The Arizona Court of Appeals recently held that commercial borrowers and guarantors cannot prospectively waive their right to limit their damages in a deficiency action on the basis of the fair market value of property sold...more

Shareholder Issues Arise When Full Enterprise Value Fails to Be Assessed

In dissenters' rights actions, shareholder oppression and member disputes as well as in breach of fiduciary duty cases, the fair value of a company becomes center stage for debate. As shareholders and companies keep an eye...more

SDNY Bankruptcy Court Allows as a Claim Unamortized Original Issue Discount Generated in a Fair Market Value Exchange

The Bankruptcy Court for the Southern District of New York overseeing the Residential Capital (“ResCap”) cases issued an opinion on November 15, 2013 (the “Opinion”) allowing the unamortized interest associated with original...more

Tennessee’s Deficiency Statute and Out-of-State Deficiency Judgments

We've previously written about Tenn. Code Ann. § 35-5-118, which governs deficiency suits in Tennessee. As explained in that post, a lender is typically entitled to recover its full deficiency unless the foreclosure sales...more

"Key Man Discount" Factors Critical in Fair Value Business Disputes

Family business disputes oftentimes uncover who is actually calling the shots and making a big difference in the profitability of a company. As described in previous Shareholder Rights blogs, the Wisniewski shareholder...more

Damage Expert Stricken without Leave to Amend after District Court Determines That Expert Over Reached by Using Entire Market...

As this patent infringement action moved closer to trial, the parties filed various motions in limine, including defendant Fortinet Inc.'s motion to strike the report and expert testimony of Network Protection Sciences, LLC's...more

Stewart et al. v. BF Bolthouse Holdco, LLC et al., C.A. No. 8119-VCP (Del. Ch. Aug. 30, 2013) (Parsons, V.C.)

In this memorandum opinion, the Court of Chancery denied the defendants’ motion to dismiss the plaintiffs’ claims that defendants breached a purchase agreement and the company’s LLC agreement by acting in bad faith to...more

Deduction Of Post-Production Costs From Gas Royalties – Another Lesson

Consider this while celebrating the resurrection of Big Tex: When a lease prohibits post-production cost deductions, can a lessee deduct those costs from a lessor’s royalty? Yes, says Potts v. Chesapeake Exploration, L.L.C. ...more

Legal Notebook: Case Study : John Grimes Partnership Limited V Gubbins

SNAPSHOT - The English Court of Appeal’s recent decision in John Grimes Partnership Limited v Gubbins [2013] EWCA Civ 37 has confirmed that, in certain circumstances, a third party involved in a property development...more

Pennsylvania Commonwealth Court Holds Structured Settlement Annuity Is Transfer for Less Than Fair Market Value Under the Deficit...

The Pennsylvania Commonwealth Court’s recent decision in the matter of Sams v. Department of Public Welfare may significantly affect the structured settlement industry, and the settlement of lawsuits on behalf of certain...more

Can You Waive the Right to a “Fair Market Value” Hearing?

We finally have an answer to the question of whether parties can contractually waive the right to a “fair market value” hearing under Arizona law – and the answer, according to the Court of Appeals – is “no.” ...more

Daubert Motion to Strike Expert Testimony Denied Where Lump Sum Royalty Was Not Improperly Based on Total Market Value of Accused...

In this patent infringement action, the patent owner sought a reasonable royalty in the form of a lump sum payment. HTC filed a Daubert motion to exclude the expert's opinion on the ground that the lump sum royalty...more

California Supreme Court Update: Air Quality Emissions Reduction Credits May Be Considered in Assessing Unit Value of Power Plant,...

A power plant operator was required to purchase emission reduction credits (“ERCs”) to comply with the permitting process to build a power plant. Over the course of several years, the State Board of Equalization (“Board”)...more

PA Tax Law News -- September 2013: Philadelphia Property Owners Take Notice! Reassessment Appeal Deadline Approaching

In February, the Philadelphia Office of Property Assessment (“OPA”) issued new “Actual Value Initiative” reassessments for every property in Philadelphia. Property owners were given the chance to file an informal appeal. If...more

SEIA Publishes White Paper on Fair Market Value for Income Tax Purposes

The Solar Energy Industry Association (SEIA) has published a white paper that addresses the income tax rules for determining fair market value. The white paper is available below....more

Planning for Tenant's Changing Needs: Options To Renew, Expand, Cancel, or Reduce

As a tenant's business changes, its needs and space requirements also change. If possible, a commercial tenant should anticipate the possibility of changing needs by negotiating certain beneficial options and rights into the...more

FERC Relaxes Rules for Sales of Ancillary Services at Market-Based Rates

The Federal Energy Regulatory Commission has expanded the ability of owners of generation facilities to sell certain generation-related ancillary services needed by public utility transmission providers at market-based rates....more

OIG Opinion 13-03

The U.S. Department of Health & Human Services, Office of Inspector General (OIG) recently issued Advisory Opinion No. 13-03, declining a clinical laboratory company’s proposed plan to provide various laboratory services to...more

REGULATORY: U.S. Regulatory: As Coal Exports Hit Record Highs, Interior Inspector General Questions Lease Valuations

Even as U.S. coal exports surge to record highs, the Bureau of Land Management (BLM) is being taken to task for (among other items) failing to take account of the burgeoning export market when calculating the fair market...more

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