We were retained by an insurance company in connection with a claim under a Directors and Officers insurance policy related to the value of a retiring shareholder’s interest in a large property and casualty (P&C) insurance brokerage.
Prior to being retained, a valuation report was prepared on behalf of the company to set the value of the shares. This report was binding unless manifest errors were identified. An additional valuation report that identified issues with the original valuation was prepared on behalf of the retiring shareholder.
We prepared a report which identified issues with the report prepared on behalf of the retiring shareholder. We also addressed whether the original valuation report, which was binding based on the shareholders’ agreement, contained manifest errors.
This matter was resolved at a mediation.