Caterpillar Finance Corp. v. Ryan

Plaintiff Caterpillar Finance Corporation (CFG) is a foreign corporation incorporated in Delaware with its principal place of business in Peoria, Illinois. CFG brought this tax protest action upon paying its annual franchise tax. CFG contended that it had reduced its paid-in capital from $56 million to $1,000 by a liquidation distribution, thus reducing its franchise tax from $56,000 to $25. The Secretary of State rejected this reduction and CFG paid the franchise tax, pursuant to the Secretary’s determination, under protest. In the resulting action filed by CFG, the circuit court of Peoria…