The Delaware judiciary over the last three months of the year shaped procedures around appraisal actions, mulled the best way to determine fair value in a transaction and further solidified the use of M&F Worldwide guidelines.

Means for Finding Fair Value Examined in Appraisal Case

A Delaware Chancery judge dove deep into an appraisal on a merger of two family-controlled banks, putting emphasis on when deal price is a strong indicator of fair value and when another method needs to be relied on.

"There's an effort to clarify when the deal price is a useful indicator of value or not," said David Margules, a Ballard Spahr LLP litigation partner. "I think we're going to see over the next year or so more cases where the court is trying to clarify and reach a consensus on these issues, and ultimately at some point the Supreme Court is going to have to weigh in on it."