RESPONDENT: United States
LOCATION: Oakland County, Michigan
DOCKET NO.: 76-1137
DECIDED BY: Burger Court (1975-1981)
LOWER COURT: United States Court of Appeals for the First Circuit
CITATION: 434 US 528 (1978)
ARGUED: Nov 29, 1977
DECIDED: Feb 22, 1978
Daniel D. Levenson -
Michael L. Paup - for respondent
Facts of the case
Media for Fulman v. United StatesAudio Transcription for Oral Argument - November 29, 1977 in Fulman v. United States
Audio Transcription for Opinion Announcement - February 22, 1978 in Fulman v. United States
Warren E. Burger:
The judgments and opinions of the Court in 76-1137, Fulman and others against the United States and 76-5935, Durst against the United States will be each be announced by Mr. Justice Brennan.
William J. Brennan, Jr.:
In 76-1137, Fulman, a personal holding company distributed stock of another company to it's shareholders as a deficiency dividend.
The stock had a fair market value of $32,525 but on it's books and adjusted basis was only $18,725.
Now there is a treasury regulation that provides that a personal holding company in these circumstances is entitled to a dividend paid deduction only in the amount of the stocks adjusted basis, that is in this case $18,725 and this case involves an attack on the validity of that regulation.
The Court of Appeals for the First Circuit sustained the validity of the regulation but that decision is in conflict with a decision of the Court of Appeals of the Sixth Circuit which held that the regulation was invalid and we granted certiorari to resolve the conflict.
We conclude with the Court of Appeals for the First Circuit that the regulation is valid and affirm it's judgment.
Mr. Justice Stevens has filed a concurring opinion concurring in the judgment and concurring in part with the Court's opinion.
Mr. Justice Powell dissents and has a filed a dissenting opinion.
Mr. Justice Blackmun took no part in the consideration or decision of the case.