- When a Related Party Transaction Is Not!
- February 19, 2015 | Author: Laura Bellotti Cardillo
- Law Firm: Pullman & Comley, LLC - Hartford Office
- Three storage facilities were transacted as part of the sale of nine such properties. “An unusual aspect of the... sale,” the IAAO publication Fair & Equitable reports in its September 2014 issue, “was that the President of the selling company was (going to be) the CEO of the purchasing company (two weeks after the sale).” The same individual also held a 20 percent interest in one of the three facilities.
The purchasing company filed an assessment appeal after the assessor relied heavily on the above-mentioned sales and pointed to a Securities and Exchange Commission filing which stated that the transaction was not at arm’s length given the president/CEOs’ unusual involvement.
The president/CEO did not have any interest in the purchasing company and, at the time of the transaction, did not control “the purchase decision.”
The Ohio Supreme Court upheld the assessor’s reliance on this most unusual transaction in assessing the facilities.
Hilliard City Schools Board of Education v. Franklin County Board of Revision, Docket Number 2014-Ohio-853. (March 11, 2014).