Estate of Bonnie I. Barge, Deceased, C. Richard Barge, Executor - Page 10

                                       - 10 -                                         
          the interest on partition (which, if she received a payment in              
          kind, would not be subject to the Barge management philosophy).             
          Accordingly, in order to determine the price that the purchaser             
          would pay, we must figure (1) the length of the partition process           
          and its costs, (2) the proper interest rate a buyer would demand,           
          and (3) the value of a 25-percent fee simple after partition.               
               B.  What a Purchaser Would Pay                                         
                    1.  Partition                                                     
               In partition suits, Mississippi courts tend to favor                   
          equitable partition-in-kind over an outright sale of the entire             
          property.  Shaw v. Shaw, 603 So.2d 287, 290 (Miss. 1992).                   
          Petitioner's expert, William C. Smith, Jr. (Smith), was of the              
          opinion that a contested partition would take from 2 to 5 years             
          to resolve at a total cost of about $1,150,000 to $1,500,000,               
          which would be borne equally by the parties.  Members of the                
          Barge family testified that they would resist any attempt to                
          partition the timberland.  We are not convinced that such                   
          resistance would be undertaken just for the sake of delay, since            
          it would not be cost free.  Resistance might be mounted to obtain           
          an advantageous partition, however.  We judge that a partition              
          action would take 4 years, and that the party initiating such               
          action would bear one-half of total partition costs of                      
          $1,325,000.                                                                 








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011