Also known as: fair cash market values · fair market value
Written by attorneys · grounded in primary & secondary sources — see below
An amount representing the price that property would bring in a transaction between a willing buyer and a willing seller, neither under compulsion to buy or sell and both having reasonable knowledge of relevant facts. This measure fixes the value of an interest at a specific time and place for purposes such as damages, inventory, or deficiency calculations.
Frank Fisher, a commercial tenant, validly terminates his lease after the landlord fails to make required repairs. The court awards damages that include the fair cash market value of the remaining lease term on the termination date, measured by what a willing assignee would pay to assume the leasehold interest.
After appointment, the personal representative of Francisco Frost's estate prepares the required inventory. Each asset is listed at its fair cash market value as of the date of death, with encumbrances noted, so that the estate accounting accurately reflects the property's worth for distribution purposes.
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Metromedia challenges a city ordinance requiring removal of its billboards. In calculating just compensation, the court determines the fair cash market value of the signs and the leasehold interests they occupy on the date of the taking.
In a shareholder suit alleging fraudulent merger terms, the court measures the plaintiffs' loss by comparing the fair cash market value of the shares surrendered against the value of the consideration received on the transaction date.
Minority shareholders challenge a corporate reorganization that eliminates their interests. The court fixes the buyout price at the fair cash market value of the shares immediately before the transaction, determined through expert appraisal evidence.
After relying on a promise to open a franchise, the disappointed party seeks damages. The court awards reliance costs measured in part by the fair cash market value of the property the party acquired in anticipation of the deal.
Courts rely on expert testimony using comparable sales, income capitalization, or reproduction cost less depreciation. The definition requires a hypothetical willing buyer and seller with full information, so actual sale prices are not required if reliable appraisal evidence establishes the value.
When the converter acts in bad faith, the owner may recover the increase in value attributable to the converter's additions. The baseline remains the value at the time of conversion, with the enhancement added only if the converter's conduct was willful.
The personal representative may list values based on reasonable knowledge but may employ a qualified appraiser when the value of an asset is subject to reasonable doubt. The inventory must still reflect fair market value as of the date of death.
…the city has “taken” their right to this superjacent airspace, thus entitling them to “just compensation” measured by the fair market value of these air rights. Apart from our own disagreement with appellants’ characterization of the effect of the New York City law, see infra , at 134-135, the submission that appellants may…