Lawrence A. Calvey and Vivian H. Calvey v. United States

This case involves a claim by the federal government that, because of the Michigan partnership statute, an innocent wife is liable for a 50 percent penalty, because of the fraudulent understatement of excise taxes, in the form of cabaret taxes, of her partner husband, of which she had no knowledge, over whose fraudulent acts she had no control, and in which she in nowise participated.

The District Court held that, as a partner, she was not liable, under the provisions of the Michigan partnership statute for such a penalty and in this dissenting opinion we are in accord with the determination…