U.S. Court of Appeals for the Fifth Circuit, 1943

Warren Co. v. Commissioner

U.S. Court of Appeals for the Fifth Circuit · Decided July 13, 1943 · McCord, Sibley, Waller

136 F.2d 685; 31 A.F.T.R. (P-H) 229; 1943 U.S. App. LEXIS 3124 (Federal Reporter, Second Series)

Counsel

W. A. Sutherland, of Atlanta, Ga., for petitioner in each case., Joseph M. Jones and Sewall Key, Sp. Assts. to Atty Gen., Samuel O. Clark, Jr., Asst. Atty. Gen., and J. P. Wenchel, Chief Counsel, Bureau of Internal Revenue, and John T. Rogers, Sp. Atty., Bureau of Internal Revenue, both of Washington, D. C., for respondent in each case.

Cases that cite this one

2 later published cases cite this decision.

W. S. Badcock Corporation v. Commissioner of Internal Revenue (5th Cir. 1974)
Leitner v. Lonabaugh (Wyo. 1965)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion of the Court

WALLER, Circuit Judge.

The majority of the Court concluded that the contingent liabilities on the assigned conditional sales contracts do not become “current liabilities” under the trust indenture until a default has occurred in the conditional sales contracts. There is no proof in the record as to the amount of defaults, if any, occurring during the tax years in question, and, therefore, there was a failure to show that the contingent liabilities ever became current liabilities.

The petition for rehearing is denied.

SIBLEY, Circuit Judge, dissents.

Case-law data current through December 31, 2025. Source: CourtListener bulk data.