Howell v. Commissioner
United States Board of Tax Appeals
The stockholders of a trust company which was carrying more than $400,000 of slow live stock loans, in order to allay public distrust on account of the failure of a related brokerage firm through which they had been negotiated, agreed to collectively indemnify the bank up to $200,000 for any loss it might sustain through failure to collect them.
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The stockholders of a trust company which was carrying more than $400,000 of slow live stock loans, in order to allay public distrust on account of the failure of a related brokerage firm through which they had been negotiated, agreed to collectively indemnify the bank up to $200,000 for any loss it might sustain through failure to collect them. The indemnity contract set forth the shareholdings of each signor and in terms provided that the liabilities created were to be "several and not joint"; it also limited the amount each stockholder was bound to pay to such ratable portion of the whole…
1Opinion of the Court
*145OPINION.
Lansdon:
In their contract these stockholders severally agreed “ to indemnify the Company * * * against loss, if any ” that it might thereafter sustain on account of nonpayment of the loans listed in the schedule attached. The gross indemnity was fixed at $200,000, but the prorated share for which each indemnitor was bound was limited to the ratio his stock ownership bore to the total outstanding stock of the bank on April 25, 1922. The amount which the petitioner was bound to pay was $23,480; and it is his contention that when that amount was paid over to the bank in December, 1922,…
2Cases cited33 opinions
- Aetna Life Ins. Co. v. MiddleportSupreme Court of the United States · 1888
- United States v. National Surety Co.Supreme Court of the United States · 1920
- Brown v. Sheldon State BankSupreme Court of Iowa · 1908
- United States Fidelity & Guaranty Co. v. Union Bank & Trust Co.Court of Appeals for the Sixth Circuit · 1915
- Capen v. GarrisonSupreme Court of Missouri · 1906
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3Cited by15 opinions
- Downer v. CommissionerUnited States Tax Court · 1967
- Zappo v. CommissionerUnited States Tax Court · 1983
- McGlothlin v. CommissionerUnited States Tax Court · 1965
- Intergraph Corp. v. CommissionerUnited States Tax Court · 1996
- Menihan v. CommissionerUnited States Board of Tax Appeals · 1933
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