Schulze v. Rayunec, 15157.
| Decision Date | 15 November 1965 |
| Docket Number | No. 15157.,15157. |
| Citation | 350 F.2d 666 |
| Parties | Charles F. SCHULZE, Special Agent, Internal Revenue Service, Petitioner-Appellee, v. Arthur T. RAYUNEC, Auditor LaSalle National Bank, Chicago, Illinois, Respondent-Appellee, Jackson L. Boughner, Intervener-Appellant. |
| Court | U.S. Court of Appeals — Seventh Circuit |
William A. Barnett, Chicago, Ill., Crowley, Barnett & Goschi, Chicago, Ill., of counsel, for intervener-appellant, Jackson L. Boughner.
Louis F. Oberdorfer, Asst. Atty. Gen., Tax Division, Burton Berkley, Atty., Department of Justice, Washington, D. C., Murray Westler, Chicago, Ill., Edward V. Hanrahan, U. S. Atty., John Peter Lulinski, Joseph M. Howard, Assts. to the U. S. Atty., Chicago, Ill., Thomas J. Curoe, Asst. U. S. Atty., Lee A. Jackson, Atty., Dept. of Justice, Washington, D. C., of counsel, for petitioner-appellee.
Before DUFFY, CASTLE and KILEY, Circuit Judges.
Certiorari Denied November 15, 1965. See 86 S.Ct. 293.
This is a companion case to No. 15036, Tillotson, Special Agent, Internal Revenue Service v. Boughner, 7 Cir., 350 F.2d 663. Jackson L. Boughner, the defendant-appellant in No. 15036, is the same person as Jackson L. Boughner designated as intervener-appellant in the instant case.
This is an appeal by intervener-appellant Boughner from an order entered by the District Court on May 10, 1965, directing respondent Arthur T. Rayunec, Auditor of the LaSalle National Bank, to produce certain of the bank's records in compliance with an Internal Revenue Service summons issued to him on February 17, 1965.
On April 7, 1965, a petition was filed in the District Court to enforce an Internal Revenue Service summons which, the petition alleged, was issued in furtherance of Special Agent Schulze's investigation into the tax liability of John Doe, the unknown taxpayer or taxpayers on whose behalf Jackson L. Boughner delivered to the Internal Revenue Service a cashier's check drawn on the LaSalle National Bank in the amount of $215,499.95.
The petition further alleged that the summons sought production of certain bank records which would relate to the depositing of funds for and the requisition and issuance of the above described cashier's check.
On April 9, 1965, petitioner moved for immediate enforcement of the summons and intervener appeared in open court and presented his motion for leave to file a motion to intervene.
On April 28, 1965, the Court overruled the objections of respondent bank and directed compliance with the summons. The order was stayed until May 10, 1965, and intervener was granted leave to file his motion to intervene together with verified pleadings. Briefs were ordered, and the matter was set for hearing on May 10, 1965.
On May 10, 1965, the Court granted the motion to intervene, denied all relief demanded by intervener, and ordered enforcement on May 13, 1965. The instant appeal was filed on May 12, and the effective date of the order issued herein was stayed pending decision of the instant case, and also of the earlier appeal, No. 15036.
In his answer and crossclaim, the intervener relied on several defenses such as 1) the bank was acting as the agent of intervener, hence the confidential information received by intervener applies to the bank because of the attorney-client privilege; 2) any disclosures would violate the bank's fiduciary duty to its customers; 3) the summons was invalid because it was issued in aid of a criminal investigation, and 4) the summons was invalid because it was issued in aid of an investigation which did not relate to the liability of any known taxpayer.
When Boughner purchased the cashier's check upon behalf of the anonymous taxpayer, Boughner personally did not acquire any rights concerning the bank's books or its records. The relationship which was established was that of debtor and creditor. See Application of Cole, 2 Cir., 342 F.2d 5, 7-8; Zimmerman v. Wilson, 3 Cir., 105 F.2d 583, 586; DeMasters v. Arend, 9 Cir., 313 F.2d 79, 85 (Fn. 11).
Boughner relies on several cases which hold that when a client makes a confidential communication to an attorney in the presence of persons such as an accountant or private detective or a doctor who has been hired by an attorney because his services are necessary to enable him to give legal advice, such communications are...
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...the check as assignee. Munson v. Am. Nat. Bank & Trust Co. of Chicago, 484 F.2d 620, 622 n. 2 (7th Cir.1973) (citing Schulze v. Rayunec, 350 F.2d 666, 668 (7th Cir. 1965), cert. denied, 382 U.S. 919, 86 S.Ct. 293, 15 L.Ed.2d 234 (1965)). Inlander appears to be the owner of the Cashier's Che......
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...invoke another persons' personal privilege against self-incrimination as a bar to the giving of his own testimony. Schulze v. Rayunec, 350 F.2d 666 (7th Cir.), cert. denied, 382 U.S. 919, 86 S.Ct. 293, 15 L.Ed.2d 234 (1965); Geurkink v. United States, 354 F.2d 629 (7th Cir. 1965); Genecov v......
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...check, purporting to satisfy an outstanding tax deficiency of the client. Tillotson v. Boughner, 7 Cir., 333 F.2d 515; Schulze v. Rayunec, 7 Cir., 350 F.2d 666. Like the prior investigative work in the tax-return- preparer cases, the receipt of the mysterious check established the predicate......
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