Corporate Redemption Agreement Appraisal.

Byline: Derek Hawkins

WI Court of Appeals District III

Case Name: Swiderski Equipment, Inc., et al. v. James J. Swiderski, et al.

Case No.: 2018AP171

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Corporate Redemption Agreement Appraisal

This case is before us for the third time. It involves an ongoing dispute between James Swiderski and his father, Alex Swiderski, regarding the redemption of James' shares of Swiderski Equipment, Inc. In our most recent decision, we affirmed the circuit court's conclusion that an appraisal of Swiderski Equipment discussed in the parties' corporate redemption agreement (CRA) should be performed by Mark Hanson, an employee of Schenck, S.C., Swiderski Equipment's accounting firm. Swiderski Equip., Inc. v. Swiderski, No. 2016AP700, unpublished slip op., 3, 14, 23 (WI App Feb. 14, 2017) (Swiderski II). However, we concluded the court had erred by directing Hanson to conclusively presume, based on a jury verdict in a separate case, that Alex's compensation as president of Swiderski Equipment was not excessive. Id., 3, 24. We therefore reversed in part and remanded for a new appraisal. Id., 3. Based on James' other arguments, we provided specific directions regarding how certain additional issues should be addressed during the new appraisal. Id., 4.

On remand, Hanson issued a new valuation report (the Second Appraisal). Swiderski Equipment and Alex moved the circuit court to approve the Second Appraisal, and the court granted their motion. James now appeals, arguing: (1)...