Dravo Contracting Co. v. James’s Empirical Analysis

Citation profile

3 federal appellate · 16 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 21 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““The tax here is not upon a unitary enterprise conducted in several states, but upon the business of contracting conducted in West Virginia, and income derived from that business is properly subject to taxation by that state.... The fact that the contractor may have prepared materials in other states for use under the contract is immaterial, if they were used in the performance of the contract in West Virginia and payments made the contractor were dependent upon such use.” [ 114 F.2d at 246 ].”

   3 later decisions quote this exact passage · from the majority
   e.g. J. C. Penney Co. v. Haradesty · United Engineers & Constructors, Inc. v. Rose

2. ““ The business here involved was contracting for the erection of locks and dams within the state. With the exception of the deliveries and the fabrication at the Pittsburgh plant, for which partial payments were made with passage of title to the government, all of the activities upon which payments were made occurred within the state, and the income derived therefrom was subject to the state’s power to tax. Certainly property brought within the state was rendered subject to that power; and no distinction can be drawn between the state’s power to tax the property and its power to tax income received upon delivery of the property within the state by the contractor or its incorporation by him in the dams and locks. * * * “ Not only is it clear from the language of the Supreme Court first quoted, that its intention was that only those portions of taxpayer’s income derived from payments made upon delivery or fabrication at the Pittsburgh plant should be excluded from income in computing the tax, but this is the interpretation placed upon its decision by the Supreme Court itself in the later case of Ford Motor Co. v. Beauchamp, 308 U. S. 331 , 60 S. Ct. 273, 276 , 84 L. Ed. 304 . In that case, which upheld a corporate franchise tax, the court distinguished its prior decision in this case, saying: ‘ James v. Dravo Contracting Company contains nothing contrary to this view. The statute under consideration there levied a privilege tax ‘ ‘ equal to two per cent of the gross income of t”

   1 later decision quote this exact passage · from the majority
   e.g. United States Steel Corp. v. Gerosa

3. ““ ‘It is clear that West Virginia had no jurisdiction to lay a tax upon respondent with respect to this work done in Pennsylvania. . . .’ “We agree with taxpayer that the court was without power to apportion its income on the basis of the cost of the activities involved in earning the income within and without the state. No such basis of apportionment is prescribed by statute; and, in the absence of statute, the court is without power to adopt it, as this is a legislative function involved in the imposition of the tax, and, therefore, not one which courts may exercise. [Citing authorities] In cases where the tax imposed is not in its nature divisible and some part thereof is beyond the taxing power of the state and no provision is made for apportionment, the whole tax is void. [Citing authorities].””

   1 later decision quote this exact passage · from the majority
   e.g. Indiana Department of State Revenue v. Surface Combustion Corp.