Opinion ID: 1441469
Heading Depth: 1
Heading Rank: 7

Heading: Burden of Persuasion as to the Value of the Land

Text: The Court of Chancery found that because Stegemeier and Mulrooney had not proven self-dealing that it was their burden to show that the estate did not receive the fair market value for the sale of the land. [55] Because we find that the trial court erred in finding there was no breach of fiduciary duty, we conclude that it was error for the Court of Chancery to have placed the burden of persuasion on Stegemeier and Mulrooney to establish the fair market value of the land. Although the Court of Chancery erred in placing the burden of persuasion to show that the sale prices were not fair upon Stegemeier and Mulrooney, this error might not change the result. The evidence on fair market value consisted of an expert for each side. In reviewing the opinion of an expert witness as to the value of real estate the most significant factor is the value of the comparable sales. [56] This factor is not dependent on which party has the burden of persuasion but rather is on other factors, such as the validity of the comparable sales examples presented. We, therefore, remand this matter to the Court of Chancery for it to reconsider whether the real estate at issue was sold for a fair price. If the Court of Chancery again determines that the real estate was sold for its fair market value, any errors of the Court of Chancery may be harmless because the rescissory damages might be zero.