Niagara Hudson Power Corp. v. Leventritt’s Empirical Analysis

Citation profile

46 federal appellate · 9 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 84 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. ““ * * * is first to determine the extent to which they reflect the value of the common stock upon which they have an option. If, for example, the market value of the common stock closely approaches the exercise price stated in the warrants, or if there is ground for a reasonable expectation that the two may coincide within the foreseeable future, then the warrants would have an intrinsic and investment value directly related to the common stock. Under those circumstances, we assume no plan of reorganization would be fair or equitable within the meaning of § 11(e) of the Act that did not recognize that value and provide an equitable equivalent for it. “On the other hand, if the market value of the common stock is less than $15 per share and there is no ground for a reasonable expectation that, within the foreseeable future,. the value will exceed $15 per share, then an option to buy it at, for example, $1,000 per share obviously would be worthless if the measure of its value depends only upon its convertibility into common stock. With such facts, it is difficult to see how the Commission could justify either the continuance of the warrants or any compensation for them at the expense of the existing common stock. The difference between the example last given and the facts of this case is merely one of degree. Where the line is to be drawn is a matter for the expert judgment of the Commission.” Niagara Hudson Power Corp. v. Leventritt, 1951, 340 U.S. 336 , 343-344, 71 S.Ct. 341 ”

   3 later decisions quote this exact passage · from the majority
   e.g. In re United Corp. · 128 F. Supp. 725 - In Re the United Corporation

2. “* * * We conclude, therefore, that in the present instance the Act does not require proof that the warrants are wholly worthless and without all market value in order to sustain the Commission's judgment that the plan is fair and equitable when it denies participation to them.”

   2 later decisions quote this exact passage · from the majority
   e.g. Osage Nation of Indians v. United States · Downing v. Securities & Exchange Commission

3. ““The determination of the value of the warrant holder’s interest [must be based upon a finding that] the warrants have a recognizable present value in terms of a reasonable expectation that the market value of the common stock will in the foreseeable future exceed the exercise price of the warrants, “We are not persuaded, however, that these statistics [showing the increase in the value of stocks of other investment companies over the preceding 12 years, as testified to by Mr. Tatham] can be relied on as showing that United’s common stock will in the foreseeable future increase in value to the extent necessary to give the warrants a recognizable present value. «* * * we cannot find that there is a reasonable expectation that United’s earnings and assets over the foreseeable future will be such that the market price of its common stock will increase to the extent needed to give the warrants a recognizable value.””

   1 later decision quote this exact passage · from the majority
   e.g. 128 F. Supp. 725 - In Re the United Corporation