Hellmich v. Hellman’s Empirical Analysis

Citation profile

164 federal appellate · 9 district · 42 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 381 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““The controlling question is whether the amounts distributed to the stockholders out of the earnings and profits accumulated by the corporation since February 28, 1913, were to be treated under § 201(a) as ‘dividends,’ which were exempt from the normal tax; or, under § 201(c) as payments made by the corporation in exchange for its stock, which were taxable ‘as other gains or profits.’ “It is true that if § 201(a) stood alone its broad definition of the term ‘dividend’ would apparently include distributions made to stockholders in the liquidation of a corporation — although this term, as generally understood and used, refers to the recurrent return upon stock paid to stockholders by a going corporation in the ordinary course of business, which does not reduce their stock holdings and leaves them in a position to enjoy future returns upon the same stock. See Lynch v. Hornby, 247 U.S. 339 , 344-346 [, 38 S.Ct. 543 , 62 L.Ed. 1149 ]; and Langstaff v. Lucas (D.C.), 9 F.2d 691 , 694. “However, when § 201(a) and § 201 (c) are read together, under the long-established rule that the intention of the lawmaker is to be deduced from a view of every material part of the statute, Kohlsaat v. Murphy, 96 U.S. 153 , 159, [ 24 L.Ed. 844 ], we think it clear that the general definition of a dividend in § 201 (a) was not intended to apply to distributions made to stockholders in the liquidation of a corporation, but that it was intended that such distributions should be governed by § 201(c), whi”

   6 later decisions quote this exact passage · from the majority
   e.g. Baker v. United States · Virginia Beach Golf Course Annex Corp. v. Commissioner

2. ““(a) Dividends Paid Credit in General. For the purposes of this title, the dividends paid credit shall be the amount of dividends paid during the taxable year.” (f) provides: “Distributions in Liquidation. In the case of amounts distributed in liquidation the part of such distribution which is properly chargeable to the earnings or profits accumulated after February 28, 1913, shall, for the purposes of computing the dividends paid credit under this section, be treated as a taxable dividend paid.” 115 is entitled “Distributions by Corporations.” (a) provides: “Definition of Dividend. The term ‘dividend’ when used in this title * * * means any distribution made by a corporation to its shareholders, whether in money or in other property, (1) out of its earnings or profits accumulated after February 28, 1913, or (2) out of the earnings or profits of the taxable yeaw (computed as of the close of the taxable year without diminution by reason of any distributions made during the taxable year), without regard to the amount of the earnings and profits at the time the distribution was made.” (The italicized portion appeared for the first time in the Revenue Act of 1936.) (b) provides, so far as here material: “Source of Distributions. For the purposes of this Act every distribution is made out of earnings or profits to the extent thereof, and from the most recently accumulated earnings or profits.” (c) provides: “Distributions in Liquidation. * * * In the case of amounts distributed (w”

   2 later decisions quote this exact passage · from the majority
   e.g. Shellabarger Grain Products Co. v. Commissioner · Ward M. Canaday, Inc. v. Commissioner

3. “A distribution in liquidation of the assets and business of a corporation, which is a return to the stockholder of the value of his stock upon a surrender of his interest in the corporation, is distinguishable from a dividend paid by a going corporation out of current earnings or accumulated surplus when declared by the directors in their discretion, which is in the nature of a recurrent return upon the stock.”

   2 later decisions quote this exact passage · from the majority
   e.g. CANAL-COMMERCIAL T. & S. BK. v. Commissioner of Int. Rev. · Short v. Short