Pigs Get Fat and
Hogs Get Slaughtered; Pushing Valuation to the Extreme
Peter Mahler, in his blog New
York Business Divorce, has published a review of a recent New York decision
involving a forced buyout and valuation of the interest of a minority member.
In this instance, the operating agreement provided that the valuation be
performed by a single appraiser. Further, in its implementation, the member
being redeemed was effectively precluded in participation in the valuation process.
Ultimately, the court found that the appraisal could not be affirmed.
The case in question is Yakuel v. Gluck, 2020 NY Slip Op.
31251(U) (Sup. Ct. NY County May 7, 2020); the decision is not yet posted on
Westlaw. Peter’s review of the decision is set forth in a blog posting entitled
This Single-Appraiser Buy-Sell Agreement
Was Asking For Trouble; HERE IS A LINK to that posting.
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