Arnold v. Phillips’s Empirical Analysis

Citation profile

35 federal appellate · 4 district · 5 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 65 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““The advances made in 1937 and 1938 were valid debts secured by the recorded trustee. A corporation may validly borrow money on security from its stockholder and officer, subject to scrutiny as to the fairness and good faith of the transaction. Zorn v. Brooks, 125 Tex. 614 , 83 S.W.2d 949 . If the lender dominates the corporation it opens the transaction to closer examination; it does not ipso facto invalidate it. We find here no proof of mala fides, or that the money was not fully paid to and used by the corporation in an honest effort to carry on its business.””

   2 later decisions quote this exact passage · from the majority
   e.g. Wages v. Weiner · In the Matter of Transystems, Inc., Bankrupt. Fruehauf Corporation v. Phillip Revitz, Trustee in Bankruptcy, Transystems, Inc., Bankrupt

2. ““We are of the opinion that in a bankruptcy case the ownership of property depends ordinarily on the State law, and so does the existence of a debt and the validity of the security for it. The inquiry begins in State law, but does not end there. Whether when bankruptcy supervenes a title acquired by one creditor is good against other creditors, and what are the relative rights and standing of creditors as against each other, and what the propriety of recognizing and enforcing secured debts under varying circumstances, are questions so related to the bankruptcy power as to be regulable by Congress; they are of the essence of bankruptcy law. There necessarily arises also a body of judicial interpretation having the effect of law, which overrides the interpretations of the State courts on similar questions. The ‘equity’ administered in the bankruptcy courts may not be exactly that of the State courts.””

   1 later decision quote this exact passage · from the majority
   e.g. In re Lico Manufacturing Co.

3. “Adversity then occurring raised a problem not different from that which commonly faces a corporation having losses. It may borrow to meet its needs. Had this corporation borrowed of a bank upon the security of the plant, the debt would no doubt be valid. What would render it invalid when Arnold furnished the money? * * * The money went to relieve the needs of the business exactly as it would have done if a bank had advanced it. No other creditor was prejudiced or misled.”

   1 later decision quote this exact passage · from the majority
   e.g. Spach v. Bryant