February 24, 2021
Brandlin Contributes to Win in Superior Court
A Los Angeles Superior Court judge ruled in favor of the Defendants regarding a complex partnership dispute. Brandlin & Associates served as a financial expert witness on behalf of the Defendants. 
“Without a doubt, Mr. Brandlin's presentation and testimony was a critical factor in my clients' success at trial. Mr. Brandlin is one of the best expert witnesses I have ever worked with in over 30 years of practice. He is persuasive, believable and convincing, and substantiates his opinions with demonstrative charts which are easy to understand and completely support how his conclusions are reached.”

Laura K. Stanton, Esq., Trial Counsel
A Complex Dispute
Through a complex series of transactions, a limited liability company (LLC) owned a retail property encumbered by a construction loan. The loan was secured by capital contributions from the Defendants, members of the LLC.

The Partnership Dispute ensued after the Plaintiff failed to credit the Defendants’ contributions correctly and transferred other membership interests in violation of the LLC’s operating agreement. A court-appointed receiver was installed to oversee and help resolve the dispute.

The Plaintiff later filed Chapter 7 bankruptcy to obfuscate the incorrect accounting, thereby undervaluing the Defendants’ capital contributions. The Bankruptcy Trustee successfully sold the property and approximately $2.0 million in surplus funds remained after liabilities were met.

The litigation concerned the Bankruptcy Trustee’s distribution of the $2.0 million in surplus funds

The Plaintiff and Defendants disagreed over the value of the LLC’s capital accounts due to the Plaintiff’s accounting practices. Valuing the capital accounts was complicated by conflicting definitions of “Fair Market Value” of property in the partnership’s Operating Agreement:

  1. FMV = “Gross Asset Value” = any item of property contributed by a Member to the Company shall be the fair market value of such property, as mutually agreed by the contributing Member of the Company.
  2. FMV = Net of liabilities secured by the property.
The Plaintiff claimed the property did not have net value above its debt. Brandlin, as financial expert witness for the Defense, provided evidence that the property’s FMV was $3.0MM. The court agreed with Brandlin.
“The Court so finds; the Court again found the testimony of Mr. Brandlin on these matters and the evidence and charts cited to support it persuasive.”

Los Angeles Superior Court – Tentative Ruling
How Can We Help You?
Brandlin & Associates is an exclusive provider of financial workouts and restructurings, forensic accounting, financial due diligence and litigation support for senior lenders, mezzanine funds, private equity groups, attorneys and middle market companies.

We pride ourselves on offering superior technical expertise, years of practical experience and unparalleled service to decipher financial and operational performance metrics. As a result, our clients are able to make informed decisions in a timely manner.