United States v. International Bldg Co, No. 508

CourtUnited States Supreme Court
Writing for the CourtDOUGLAS
Citation73 S.Ct. 807,97 L.Ed. 1182,345 U.S. 502
Decision Date04 May 1953
Docket NumberNo. 508
PartiesUNITED STATES v. INTERNATIONAL BLDG. CO

345 U.S. 502
73 S.Ct. 807
97 L.Ed. 1182
UNITED STATES

v.

INTERNATIONAL BLDG. CO.

No. 508.
Argued April 8, 1953.
Decided May 4, 1953.
Rehearing Denied June 8, 1953.

See 345 U.S. 978, 73 S.Ct. 1120.

Page 503

Mr. Philip Elman, Washington, D.C., for petitioner.

Mr. Malcolm I. Frank, St. Louis, Mo., for respondent.

Mr. Justice DOUGLAS delivered the opinion of the Court.

Respondent, a Missouri corporation, owns a leasehold of a plot of ground together with an office building erected on it. In 1942 the Commissioner assessed deficiencies against respondent for the taxable years 1933, 1938, and 1939, determining that it had claimed an excessive value as its basis for depreciating the property. These deficiencies were predicated on a basis of $385,000 amortized over the life of the lease. Respondent, who claimed a base of $860,000 amortized over a shorter period, filed petitions for review with the Tax Court. Meanwhile respondent filed a petition under ch. X of the Bankruptcy Act, 11 U.S.C.A. § 501 et seq. which ended in a confirmed plan of reorganization. Although the Collector filed proof of claim for the deficiencies in those proceedings, he later withdrew the claim under a stipulation that the withdrawal was 'without prejudice' and did not constitute a determination of or prejudice the rights of the United States to any taxes with respect to any year other than those involved in the claim. Shortly thereafter respondent and the Commissioner filed stipulations in the pending Tax Court proceedings stating that 'there is no deficiency in Federal income tax due' from respondent for the taxable years in question, that the tax liability for each of the years was nil, and that the jeopardy assess-

Page 504

ment was abated.1 The Tax Court, pursuant to the stipulation, entered formal decisions that there were no deficiencies for the taxable years in question. The Tax Court, however, held no hearing; no stipulations of fact were entered into; no briefs were filed or argument had. The issue as to the correctness of the basis of depreciation used by respondent was, however, the basis of its appeal to the Tax Court. And so, when the Commissioner in 1948 assessed deficiencies for the years 1943, 1944, and 1945, challenging once more the correctness of the basis of depreciation, respondent paid the deficiencies and brought this suit to recover, alleging inter alia that the decisions of the Tax Court for the years 1933, 1938, and 1939 were res judicata of the fact that the basis for depreciation was $860,000. The District Court held against respondent. 97 F.Supp. 595. The Court of Appeals reversed, 8 Cir., 199 F.2d 12. Because of a conflict between that decision and Trapp v. United States, 177 F.2d 1,...

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277 practice notes
  • Welsh v. Gerber Products, Inc., No. 19
    • United States
    • Court of Appeals of Maryland
    • September 1, 1987
    ...e.g., Lawlor v. National Screen Service, 349 U.S. 322, 328, 75 S.Ct. 865, 868, 99 L.Ed. 1122 (1955); U.S. v. International Building Co., 345 U.S. 502, 506, 73 S.Ct. 807, 809, 97 L.Ed. 1182 (1953); Balbirer v. Austin, 790 F.2d 1524, 1528 (11th Cir.1986); Avondale Shipyards, Inc. v. Insured L......
  • In re Hope, Bankruptcy No. 93-00252
    • United States
    • United States Bankruptcy Courts. District of Columbia Circuit
    • March 3, 1999
    ...by the court of an agreement by the parties to settle their controversy") (citing United States v. International Bldg. Co., 345 U.S. 502, 505-06, 73 S.Ct. 807, 97 L.Ed. 1182 (1953) ("we are unable to tell whether the consent decree was based on the merits or on some collateral con......
  • Messier v. Southbury Training School, No. 3:94-CV-1706 (EBB).
    • United States
    • United States District Courts. 2nd Circuit. United States District Court (Connecticut)
    • June 5, 2008
    ...a consent judgment "may involve a determination of questions of fact and law by the court." United States v. Int'l Bldg. Co., 345 U.S. 502, 505-6, 73 S.Ct. 807, 97 L.Ed. 1182 (1953). However, "unless a showing is made that that was the case, the judgment has no greater dignit......
  • In re Hart, Bankruptcy No. 90-61253
    • United States
    • United States Bankruptcy Courts. Seventh Circuit. U.S. Bankruptcy Court — Northern District of Indiana
    • July 3, 1991
    ...has been agreed to between the parties and, therefore, has no preclusive effect include: United States v. International Bldg. Co., (1953), 345 U.S. 502, 73 S.Ct. 807, 97 L.Ed. 1182, Fruehauf Trailer Co. v. Gilmore (10th Cir.1948), 167 F.2d 324; Lawlor v. National Screen Serv. Corp. (3rd Cir......
  • Request a trial to view additional results
277 cases
  • Welsh v. Gerber Products, Inc., No. 19
    • United States
    • Court of Appeals of Maryland
    • September 1, 1987
    ...e.g., Lawlor v. National Screen Service, 349 U.S. 322, 328, 75 S.Ct. 865, 868, 99 L.Ed. 1122 (1955); U.S. v. International Building Co., 345 U.S. 502, 506, 73 S.Ct. 807, 809, 97 L.Ed. 1182 (1953); Balbirer v. Austin, 790 F.2d 1524, 1528 (11th Cir.1986); Avondale Shipyards, Inc. v. Insured L......
  • In re Hope, Bankruptcy No. 93-00252
    • United States
    • United States Bankruptcy Courts. District of Columbia Circuit
    • March 3, 1999
    ...by the court of an agreement by the parties to settle their controversy") (citing United States v. International Bldg. Co., 345 U.S. 502, 505-06, 73 S.Ct. 807, 97 L.Ed. 1182 (1953) ("we are unable to tell whether the consent decree was based on the merits or on some collateral con......
  • Messier v. Southbury Training School, No. 3:94-CV-1706 (EBB).
    • United States
    • United States District Courts. 2nd Circuit. United States District Court (Connecticut)
    • June 5, 2008
    ...a consent judgment "may involve a determination of questions of fact and law by the court." United States v. Int'l Bldg. Co., 345 U.S. 502, 505-6, 73 S.Ct. 807, 97 L.Ed. 1182 (1953). However, "unless a showing is made that that was the case, the judgment has no greater dignit......
  • In re Hart, Bankruptcy No. 90-61253
    • United States
    • United States Bankruptcy Courts. Seventh Circuit. U.S. Bankruptcy Court — Northern District of Indiana
    • July 3, 1991
    ...has been agreed to between the parties and, therefore, has no preclusive effect include: United States v. International Bldg. Co., (1953), 345 U.S. 502, 73 S.Ct. 807, 97 L.Ed. 1182, Fruehauf Trailer Co. v. Gilmore (10th Cir.1948), 167 F.2d 324; Lawlor v. National Screen Serv. Corp. (3rd Cir......
  • Request a trial to view additional results

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