Affiliations

• Liberty Baking Co. v. Heiner

  Court of Appeals for the Third Circuit · 1930-01-23 · cited 57×

  Liberty Baking Co. sued the tax collector to recover over $16,000 in 1918 income and profits taxes, after the Board of Tax Appeals upheld the Commissioner's denial of certain deductions. The key issues were the validity of two waivers extending the statute of limitations and whether the company could deduct losses from demolishing buildings for plant expansion, a failed flour-milling process, and unused bread wrappers made obsolete by post-war changes. The court held the waivers valid because they were properly executed by corporate officers, accepted by the Commissioner, and supported by consent without needing additional consideration. It denied the building and milling process deductions, finding the demolition was planned at purchase and the process abandonment was not definitively established until 1919. The court allowed the wrapper loss deduction in 1918, as the regulatory change occurred that year and caused a clear loss then, modifying the lower court's ruling on that item while affirming the rest.

  taxesbusiness & regulatoryprocedure

  Read the full opinion inline ▾ (1,564 words)

• Woolen Corporation of America v. Gitnig

  Court of Appeals for the Third Circuit · 1929-06-05 · cited 15×

  The case concerned the confirmation of a composition offer made by bankrupts David and Nathan Gitnig in their voluntary bankruptcy filing, which a creditor, Woolen Corporation of America, opposed on the grounds that the bankrupts had issued materially false financial statements to obtain credit. The District Court, following a referee's report, confirmed the composition after finding insufficient evidence that the bankrupts knew the statements were false. On appeal, the Court of Appeals reversed, applying the Supreme Court's recent decision in Morimura, Arai & Co. v. Taback Bros. to hold that the evidence established reckless indifference by the bankrupts, who signed the statements without examining books or other available information despite their general knowledge of the business and omitted liabilities. The court therefore directed denial of confirmation on this basis and did not reach the alternative objection regarding the composition's benefit to creditors.

  business & regulatoryprocedure

  Read the full opinion inline ▾ (1,273 words)